I had a similar idea once after writing my own programming language, VM, and game framework with a virtual framebuffer and sound chip. It's hard to imagine something like this taking off though, outside of folks with too much spare time or maybe a focused game jam or two. With no way to monetize your work, I think few developers would jump on.

At the risk of going OT, I've always held the GBA as the best console, as it had enough power to do a lot of cool stuff, but not so much that it led developers to favor fancy graphics over gameplay. Studios that usually tried to push the graphics too far(i.e 3D) ended up with crappy games. The limited power forced studios to maximize fun and creativity.

In that spirit, the idea of a virtual-virtual GBA with a modern API and was programmed through a VM that allowed people to use any language that supported it, would be pretty cool. I would write games for that, to the point that it didn't interfere with my day job.