Are you sure that it would be a downgrade in security and why?
I guess we can test it and see, but I'd stay away from using any emulator with real money.
If the wallet is being emulated on a clean desktop OS, would there be a loss in entropy if we generated a seed through that emulated software, or would the keys be less secure?
Depends on the potential security holes of the emulator.
Obviously, it would have to be a trusted and safe emulator, which also begs the question if there is such a thing?
There's
waydroid which can run on Linux, is open-source and released under the GPLv3 license. I'm sure there are more, but even if "fully reviewed and totally secure", I'd not use a Bitcoin mobile app in an environment that wasn't written to run on, because there might be security implications with the app itself.
The safest approach is to use different wallet software for each cryptocurrency. The security will be better, because no developer cares to be as cautious as each expert team for each crypto accordingly.
Uniblow wallet
I don't care what they say. I don't trust someone who calls their work like that.