They do and that's is specifically what this offering is about.
However our policies have always been that those entities need to meet the same requirements (operationally, etc) as we do which includes not participating MiTMs with any key material associated with that PKI.
Those customers who do have such CAs are also (normally) subject contractual restrictions to what namespaces they can issue against and they are always subject to audits where we confirm their usage is consistent with those policies.
In the very rare cases where that is not the case they are audited to meet the exact requirements we meet - we almost never do this.
It’s a difficult problem as a whole, there are legitimate use cases that help secure the web and enable commerce that are best served by having publicly trusted certificates our goal as an industry is to find ways to address those needs while reducing the risk.
To that end when I joined GlobalSign a year ago (from Microsoft) one of the first things I did was started here to advocate the industries use of name constraints as a means to reduce risk for all parties involved in these scenarios.
Ryan