[edflsafoiewq]

I believe the main interest in recompilation is in using the recompiled source code as a base for modifications.

Otherwise, yeah, a normal emulator JIT basically points a recompiler at each jump target encountered at runtime, which avoids the static analysis problem. AFAIK translating small basic blocks and not the largest reachable set is actually desirable since you want frequent "stopping points" to support pausing, evaluating interrupts, save states, that kind of stuff, which you'd normally lose with a static recompiler.