8086 is x86
Saying this is an "x86 CPU emulator" is misleading, even if technically an 8086 is an example of the x86 family. To avoid the misleading ambiguity you'd have to say something like "emulates a member of the x86 family", at which point you may as well just say "8086 emulator".
I don't think calling it x86 is misleading, and this is coming from the perspective of someone who dabbles in rev and pwn of x86.