Well, I decided to check up on the status of the Model-2 Emulator Virtua, to see if there was any support for Sonic Championship... while there, I poked around the site, and found a link to a site where a guy, calling himself ShinobiZ, posted what I find as the most comprehensive information on just about every Sega Arcade board out there. Upon going into see listings of every System 32 game, I found two more Sonic Arcade Screenshots.

Sonic & Ray swinging through a mountain-like Zone.
I'd say this was from an opening scene, but you can see Sonic's lifebar. It's a level!

The first screenshot is nothing new, it's the 2nd one that catches my eye. Though you all may say, "Must be from the opening scene." ... it's not. You can clearly see Sonic's lifebar. It's a level. Also, according to this site, there is a System 32 emulator in the works. While obviously known from such sites as Geoshock, it might prove that it is still in the works...who knows?

Source: http://www.system16.com/