Nitpick: Wine is as much a windows emulator as xterm is a terminal emulator.
It's all the other "terminals" for Linux, especially the libvt ones, Kitty, and Alacritty, that are more like shitty xterm emulators.
Different kinds of emulators have different kinds of interfaces they emulate.
xterm - terminal emulator for X
From Wikipedia entry for Wine: Wine (formerly a recursive backronym for Wine Is Not an Emulator (...))The wine project changed name to avoid the bad reputation emulators had back then due to their poor performance. "Wine is not an emulator" is not factually accurate, its a social workaround.
Wine is a re-implementation of win32 on top of (near) POSIX OSes like Linux.