You'd think somebody could print money with a Dreamcast Classic instead of all the cheap looking Genesis things out there. I think the fact that the Dreamcast had too many arcade-like games would make it better than that Playstation Classic which had a lot of slow games that you can't easily jump in and out of.
Right now, Dreamcast seems to be the sweetspot for hardware emulation. A sub-$100 PC (on the used market, anyway) can easily emulate a Dreamcast (for all the games I've tried, anyway - Tony Hawk 2, DOA 2, etc), possibly even with extra cycles to provide extra video smoothing to get rid of jaggies that are pretty obvious at its normal resolution.
So yeah, I think this would be possible. I wouldn't think the IP for the hardware would be an issue since it's all emulated, it's just down to the BIOS and the games themselves.