No, it does emulate x86 software (except it emulates in hardware). and yes, its real slow.
This depends on your definition of emulate. If you want to take into account hardware emulation, then all modern IA32-compatible designs are emulating x86. The Pentium II, the Pentium III, the Athlon, the Pentium 4, etc. All of these take in long CISC instructions and translate them into small internal ops.
And it depends on your definition of "real slow" as well. I use an Itanium 2 system under my desk, and it's more than fast enough for the IA32 code that I want to run. I run my simulations on IA64 optimized code and then occassionally process data using IA32 applications. It works fine. And it's nice to have the option to run IA32 applications at all. In the past all of my workstations have either been Sun Solaris, HP PA-RISC or IBM AIX operating system based systems. If I wanted, say, the latest version of, for example, Mozilla, I would often have to compile it myself and then deal with various porting problems all simply to have a recent browser. Now I just go grab the latest binary for IA32 - if the IA64 binary isn't available - and just run it.
Has anyone who is saying these negatives actually used an Itanium 2 system? I have one under my desk and it's actually slightly smaller than the Xeon and PA-RISC based machines that I have used in the past. It doesn't seem especially heavier than my computer at home - and it's certainly lighter than some of the IBM workstations that I used years ago. The air that comes out of it is warm, but it's not noticeable in our office environment. At least I have never paid any attention to it. Look at the pictures of a workstation in this
.PDF for the ZX6000 from HP - it's not an especially large box.
Of course, I am biased. I spent years working on the Itanium 2 microprocessor, but I don't think that this has somehow blinded me completely. They make nice workstations, and if I wasn't involved in their development, I think that I'd still think that they are nice.