I've started down the whole hardware modification route because of this.
I still have my original dreamcast, but I know both it and the games I have for it are becoming old/worn and things like the laser probably needs replacing soon, so I bought a Dreamcast with GDEmu installed so I can back up and play my games on an sd card.
I'm hoping to get similar mods on other consoles - particularly ones that use cds/dvds, but its an expensive solution.
I do think with what microsoft have started doing with this generation is the beginnings of something industry wide, but I fear much like the early days of film and of television, will to a large extent just be lost to time
This is something I'm looking into, just need to work on my soldering skills. Everything I've read about ODE's seems fantastic.
Regarding BC, I'd like to see it happen more broadly, and MS has been pioneering it. Let people play what they own, keep their library, and expand on it. I'm very, very interested in Sony this gen too, since I have a large PS1/2/3/4 library, let alone what I amassed on PSP/Vita. Being able to play SotN off disc in a next gen system would be fantastic.