Homebrew physical games have been released for the Genesis, Neo-Geo, Jaguar, Dreamcast (a ridiculous lot of it infact) and maaany other consoles before. What's really surprising is that someone didn't try to cash in on the SNES worship sooner.
Super Fighter Team is not really "developing" the game; Nightmare Busters is a game that was completed in 1995 but the publisher dropped it and it never got released. The rom was dumped and you can find playthroughs of it and everything. Presumably they're aiming for the hardcore collectors that'd want to own a physical copy.
I heard that K-mart once re-released the Sega Mega Drive and Atari [something] with 20 games installed (it had a start up menu with the list of games). You couldn't play real game cartridges though, and none of the installed games were new.