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Prism is one Pokemon hack that has side scrolling like how LoZ for the GBC does. Though it could be good for creating a 3D town effect (possibly for a B/W hack using the earlier gens). There are probably many ways to exploit it also.
Sounds doable. I'd say just make a whole tileset for the sidescrolling, make some new OWs, and on the tiles block movement up and down. Then just have a level script which moves the camera across the screen. It would be a lot of work and all I've just said is pure theory, but meh. I am planning on doing some sort of side scroller in my hack. Also Blazichu survives \o/