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So this is a framework to X? Framebuffer? Wayland? Everything? How does this software fit into all other software out there?

It is for embedded development - e.g. your car radio or washing machine. You wouldn't use this for desktop.

BTW, it is written right there in the title "runs on MCU ..." (MCU = microcontroller)

For Linux: It render the framebuffer directly -- you can check the code GuiLiteSamples/HelloParticle/BuildLinux/main.cpp

For MCU: It call LCD driver for rendering pixel -- you can check the code GuiLiteSamples/HelloParticle/BuildSTM32F103/main.c

For Qt, MFC, iOS, Mac: It build UI as a memory bitmap, and map it on picture Widget of Qt/MFC/iOS/MacCocoa