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Yes it works.  The cost for current version is 4 CPLDs, which are about $4/piece.

The problem with extra features is that there is very little spare capacity left in the CPLDs, both in logic and spare pins. CPLDs don't have any RAM either. 

There are other projects that put the whole thing in an FPGA, which is much more powerful.

More information, please!

Does this work yet? How much does it cost to build? How hard would it be to make this such that there could be extra features? (eg emulating the rare-as-hen's-teeth 6508 which has 128 bytes of RAM and an 8bit GPIO port, both right on the chip die, broken out to external pins -- or maybe creating versions that never existed, such as a 6508 with 256 bytes of RAM or something.) How hard would it be to make a version just like this one that could plug into a 40pin DIP socket (i.e., a 40pin DIP-on-Module)? How about a 40pin DIP-on-Module extra/custom-features version...?