Does it act more like a wrapper? Doesn't Wine still have to translate most instructions from the Windows API? Isn't that a bit counterintuitive?
Topic on Talk:Wine
Why isn't Wine treated as an emulator?
Software running under Wine is using the real hardware as much as possible whereas an emulator simulates all of the hardware.
Wine's approach means much better performance. The limitations of this approach (such as requiring x86-compatible host hardware) don't matter to many users.