But for genetically modifying stuff, we're doing really well on that track. Most of the tech needed for designer babies is here. The issues with it aren't the tech existing, but our willingness to create massive numbers of defective offspring before we get a viable glow in the dark human. It's not the tech that's lacking, only our appetite for failed runs and a severe distaste for side-effects. But that's proven to work, CRISPR has already proven to be able to make glow in the dark pigs, so it's a matter of refinement. We don't have the slightest clue about terraforming. Just ideas at this point.
"Biologically, the Culture's citizens have been genetically enhanced to live for centuries, and have modified mental control over their physiology, including the ability to introduce a variety of psychoactive drugs into their systems, change biological sex, or switch off pain at will. Culture technology is able to transform individuals into vastly different body forms but, for unclear reasons, the Culture standard form remains fairly close to human."
In short if we want to expand beyond at best 3 planets we need a new solar system. That means we need humans able to make the several thousand year journey in a generation ship to a different star.
I suppose we could also take an earth sized chunk out of Saturn and put it into earth orbit. A generation ship to a different star seems more feasible to me.
I would expect that to happen. It's not a weird approach, it's perfectly reasonable - biology, after all, is technology. A very advanced nanotech that we did not engineer and we don't control yet, but technology nonetheless. Humans are not bound to deal only with metals, plastics and electricity forever.