You already don’t need to emulate the entire hardware system like you would with a PS3, but you still require a complex translation layer.

I think this is their point, just worded better. Wine and Proton are not "emulators", but translation layers like you are describing.

Although I have no idea what they are talking about in regards to virtualization - being able to install Linux on a PS5 doesn't get me any closer to running PS5 games on Linux, and I can't even imagine the virtualization headaches to get the PS5 OS running in a VM with enough access to the hardware to not blow chunks (and honestly sounds a lot closer to true hardware emulation than not).