MS would love to have Xbox itself being nothing more than an app or Windows Icon that you click on. Pure emulation layer as a part of Windows would be so much easier than what they ACTUALLY did, which was shrinking the entire Xbox hardware into a chip. Sony did the same with PS1 PC on PS2 and 1st generation PS2 BC on the PS3.
As for the Wii shop, that is a console inside a console. That is not a PC license so no contract is broken. You can try to pretend i am lying but that is just you dismissing what I am saying, that is on you. i can tell you the facts, you can ignore it if that makes you happy.