Windows DLLs. Right I know, its technically a 'layer' but it still fakes them.
Wine's not that kind of emulator
When users think of emulators, they think of programs like Dosbox or zsnes. These applications run as virtual machines and are slow, having to emulate each processor instruction. Wine does not do any CPU emulation - hence the name "Wine Is Not an Emulator."
Some people argue that since Wine introduces an extra layer above the system a Windows application will run slowly. While technically true, Wine is no different from any other software library in this regard; even newer versions of Windows must load extra resources to support older applications.
Importantly, the combination of Wine and Unix can sometimes be faster than Windows itself. This is especially true when the system has good drivers and the application isn't exposing any Performance Related Bugs.
Tell me, if they dont care about application compatibility, what do they care about?
Implementing the Windows API I think.
Except that MS never had a stated goal of getting PS3 games to run on Xbox.
No, but the point was this:
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Wine is free software; you can redistribute it and/or modify it under the terms of the GNU Lesser General Public License as published by the Free Software Foundation; either version 2.1 of the License, or (at your option) any later version.
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I am a little confused as to what you think Wine is intended for; is it the ability to run more and more Windows programs, and if not, then what is it intended for?
I tyhink you are confused for whose responsibility it is. Wine is a free software project originally intended to be a compatibility layer for Windows 3.1 on POSIX systems. It is constantly chasing a changing target and it is not intended to replace Windows. Try it with its target software (legacy Windows software) and you'll see it works near perfectly. I've used Wine for software which Windows no longer could run.
Wine is not really designed to be a drop in replacement for the latest Windows release. Since Windows is developed quite slowly, it can catch up quickly, but that is just a plus.