I actually spoke to the developer of Simulant about the potential port, and they took a look at the game and reckons the game is perfectly possible on the Dreamcast as is, and easy to do on the engine.
I personally expect that to keep the game 60FPS, I would have to cull some background models (which I think the engine would handle, anyway. The dev mentioned something about this), and maybe downgrade the environments a tad, and even then, the framerate would suffer dips.
It should be fun, though. I would love to have my favourite PS2 game on my favourite console. Besides, Klonoa is a series about dreams, not being on the
Dreamcast is a missed opportunity!
The only issues now would be getting the assets, the legality of it all. Apparently, it's legal to remake a game, but not so much using the assets and distributing the game with them, so this might just end up as a personal project to test the engine, maybe send copies to some friends.