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Im a nobody, but my guess is their hardware is mainly usb bussing and A/D - D/A conversion....
I'm thinking the same thing. Actually, it's practically impossible for the SL1/3/TTM57 to do the emulating if you think about, since it's too cheap for that.
But especially due to the USB 1.1 connection in the SL1/TTM57. USB 1.1 is very sloooow. If you would load a larger Wav-file, it would need 5~10 seconds (?) to be transferred over the USB-cable. Since it's not taking seconds, but loads almost immediately. So I think you can assume the PC is doing all the work.