It is not OS X, but the Classic Macintosh System translated on the fly to native code. Because it didn't get enough funding, and lack of interest, and very few buyers it sort of went DOA. I am sure if they had enough funding they could have modified it to OS X translation. Maybe someone should help them do a Kickstarter project?
At the end of the day, it's really just API translation; not a technically difficult project, just an incredibly intensive one.
I do think they're on the right track, though. Hoping to lend a hand when I get some free time.
I felt it is related to the OS X emulation effort, they'd just have to add in a PowerPC emulation and then do the Macintosh system ROM a bit to run Mac OS X code, potentially.
I thought it might be of use to those looking to run old 68K Mac apps.