HP's Dynamo project had great success JITing PA RISC code to PA RISC code. What's the point? They had access to values at runtime that they did not at static compile time. They were able to delete branches and optimize very large basic blocks such that the resulting code ran fast enough to more than overcome the overhead of the translation.
This code could not be generated at static compile time because the program input is not available then. Even if you can predict a static path at static compile time (doubtful) you still don't have the actual data values to take advantage of.
DEC's FX!32 and IBM's DAISY were similar projects.
They weren't tracing JITs but they could just as well have been.