In my little back room at our house, I have my 5200 and 7800 out and in use on my old CRT. I play with the Intellivision there, too, because of the keypad on the controller; haven't found an agreeable way to emulate that. (Same with the 5200 joystick.) On my desk, I have my Aquarius and my 600XL attached to an LCD; I mostly use these as computers rather than game machines.
For everything else, I set up an old PC with Maximus Arcade as a frontend and connected it through the CRT. With extension cables on the USB gamepads, I can play all the games from Nintendo's systems from the comfort of my little couch. (Over time, I plan to add more console emulation there, but will leave the Ataris and Inty alone.) I also run MAME through that PC, naturally, and play the heck out of arcade games there. (I'll be spending the next several months softening up my wife to let my father and me build a MAME cabinet next year.)
There just isn't any more room for more consoles in my room. We have a Genesis, but it's mostly for my daughter and so sits out on the main TV. Other than that, I can have no more. Money is also a concern, of course. I have three kids; gone are the days of liberally shotgunning money into this sort of stuff, alas. One day, I really want a Vectrex and will have one. I'd like a TG16, but will probably defer it. Life just doesn't allow for that right now. So, hardware it is for the important stuff, and emulation for the rest. I may prefer it all to be on the real thing in principle, but life has a way of making you more practical than that. And, as Keatah reminds us, emulation has come a long way since I discovered it back in the mid-to-late-'90s.