Isn't the DC SDL *already* software-only? I supposed it rendered everything to a custom buffer in system RAM and just uploaded the result into the PowerVR as a texture.
I don't recall how much RAM there is outside the VDPs in the Saturn... maybe it should be possible to have a custom buffer, render to it, and upload it to the VDP2 as character/tile data.
I recall that a few Saturn games used custom renderers, namely Hexen (Doom-ish renderer for the levels, and used VDP1 sprites layered on top of it) and Amok (it uses a voxel terrain and everything but the hud is done in software - even the 3D ships).
Also, Sonic R and Burning Rangers had SW renderers for specific effects. BR rendered the level at a lower resolution with everything black but the explosions, glass and other things that should be additive-blended into a scaled VDP2 window layer set to blend additively against the VDP1 buffer. Sonic R uses a custom render for the envronment-mapping effects in logo and loading screen, so it surely is possible. But the real question is how hard it is...