That looks cool, but I think what GP wants is a PS1-like virtual console with limited palette, 32x32 textures, and unlit, unfiltered, non-projective texture mapping.
PS1 can support 256x256 truecolor (or 4bpp/8bpp paletted) textures, dithering and gouraud shading! It also has a very weird graphic pipeline that I don't think would be very friendly to a novice: the 3D projections are done on the CPU and the depth buffering is handled by... the DMA. The GPU is purely 2D, hence the lack of perspective correction in the texture mapping.
The Pico-8, in both its aesthetic and its imposed constraints, creates a "fantasy version" of the experience of working on actual 8-bit consoles. It presents that era as people remember it, instead of as it actually was. I think a similar thing could be done for the N64 generation.