Xbox 360 to soon become a "Virtual Console"

Boss Level writes:

After Microsoft’s E3 announcements about "Project Natal" and "Games on Demand" it would seem as though soon your Xbox 360 will become a "Virtual Console", no it won’t be able to play N64 and Genesis games, that’s the other virtual console. But it will let you play your games with nothing but the system itself. How? I’ll tell you how