Is it possible to run a PS2 emulator through Android's DVM? I have heard some random posts from people on forums claiming that Android's Dalvik Virtual Machine can't handle something of the magnitude of a PS2 emulator, such as this one ported somewhat. 

Is this true? 

Are there obvious limitations to a massive program running under Dalvik, or the DVM's workload?

With the obvious limitation being the hardware and most devices having major trouble with this for that very reason, is there any software aspect that may limit this, in short?
It's not a matter of Dalvik being incapable of running certain types of programs, it's a matter of performance.

Any runtime system based on non-native bytecode (e.g. Dalvik, JVM, .NET CLR) incurs some performance overhead in translating the bytecode into a form that the CPU can run.  For most apps this isn't a problem, since most apps do relatively little CPU work and spend most of their time just waiting for input.  But an emulator is typically a CPU-intensive program, so it's often better to implement it using native code, which doesn't incur the overhead of running on Dalvik.