Very, very sneaky indeed, they replace the whole internals with incompatible hardware and then wrote an emulator to hide the fact. It's a conspiracy I tell you, and they're all in on it.
You don't replace an ARM Cortex A8 with a PowerPC core, and then redo all the internal hardware and buses to account for the different architecture, and them keep the product code virtually the same.
Also there's no evidence of an emulator.
The performance increase is perfectly explained by the faster CPU and extra L2 cache.