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So your argument is that its closer to virtualization, than to emulation?

Not really. And I'm not sure the concept of virtualization makes sense when applied to hardware in the first place.

The FPGA is actually implementing the hardware. It's like using a newly manufactured edition of the original.

The FPGA is used to implement an approximation of the original hardware’s functionality - not a perfect clone of the original hardware itself, which means they have their own unique bugs and inaccuracies compared to the original designs.

I think “emulation” fits as a reasonable description of this, personally - at least as something an average person will understand.

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