Seriously, this is a cool project and anyone who has a problem with this kind of thing should have their slashdot account suspended pending a review of their nerd status. I myself made a simple 31 bit processor with FORTH as the OS. It taught me a lot. This is what hobbies are all about. A safe place to experiment with ideas and try something out. I've used that experience to do other things that I wouldn't have even otherwise tried. Supposed "silly" projects can make "serious" projects possible - even if only to broaden your perspective. Might even get you a different job.
Emulation of 32 bit on 8 bit: its guaranteed to be slow in the first few releases due to various bottlenecks... but hey, optimise the data i/o and you could actually make something of this. People used to bitch about how slow serial ports were.