Emulation not only refers to hardware emulation but software also. (or both)
The whole Classic environment in Mac Os X creates a virtual machine that emulates a Mac Os 9 environment to allow to run classic mac applications. (note the low and capital letters).
Apple called this environment Classic. But we can - using correct meaning language - to call classic apps and classic operating systems (Mac Os 9, Mac Os 8.x, System 7.x etc...) to ones before Os X or "modern" SO.
Furdermore the whole Classic environment will fade in to irrelevance in computer history. While mac Os classics apps, hardware am SOs will remain a hit in computer history. So I state for using this term for Mac Os 9, Mac Os 8.x, System 7.x ... hardware and software, while the use as Classic Environment on Mac Os X fades into irrelevancy.