2) Emulation of cards using software, of course, should be possible, but not shown in the current Android APIs. You will have to delve deeper into libnfc-nxp (and possibly below). It can be tricky. This feature is offered for Inside Secure chips, as shown in their reference OpenNFC implementation. The only question is whether a CLF firmware change is required. If not, then you can crack it into a software image.
However, warnings that you are missing the following functions: - security (Android application is not as secure as a smart card) - fast and predictable response time (well, it depends on how you code it) - card emulation when the phone is off.
I believe SEOS is based on ISO14443-4, not Mifare. This means that you need a safe element to run it.
1) I'm not too sure about this, I believe that it will still be hardware (for example, it depends on the built-in secure element, such as NXP SmartMX.
Another alternative is to start developing a secure element. The easiest way is to get some test SIM cards that support SWP / HCI. There is a free developer kit called IzyNFC that you can use for javacard, as well as GSMA and AFSCM technical documents for a third-party Android application.
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