So what's the point of their 'Carbon Engine' if they just use other emulators?
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That was the point of it, to have a cohesive user interface for them that could be reused across projects.

It wasn't a bad idea! A configurable, reusable frontend for commercial re-releases! But how can you even do that without getting permission for the tools first?!
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Yeah, it's fine *if* you're complying with the terms of the projects you're building on top of. But, repeatedly, they're not.

If they didn't like those terms, didn't think they could do what they were doing if they followed them - well, they could have picked other emulators, or just not built it.
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I always took it as their version of something like RetroArch, an abstraction layer to handle the frontend, controls, settings etc. wrapped around the actual emulators.
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