Emulated means that it pretends that there exists sound card - it returns its properties like name, supported sample rates, channels, etc... But in reality all it does it pushes data to WASAPI API which actually deals with real soundcard.
There is not such thing as "hardware accelerated" for WASAPI. All it does it pushes buffers to hardware + retrieves back state. They did not want to manage this kind of code (talking to hardware) in multiple places - WASAPI, XAudio2, WinMM, DirectSound. So they implemented talking to hardware drivers only in one place - WASAPI. Everybody else needs to use WASAPI api for their sound input or output.
This is similar how Windows & C runtime deals with file I/O. Windows supports file I/O only with CreateFile/ReadFile/WriteFile functions. But C runtime calls fopen/fread/fwrite function. And C++ uses std::fstream class. But all that C & C++ functions do, is call CreateFile/ReadFile functions eventually. This is same way how DirectSound works with WASAPI.
DirectSound supported various 3D effects for sounds (like echo, reverb, ..) - those were hardware accelerated in some of cards. Now its not possible to use them through WASAPI. You need to do that in software or use hw manufacturers API. But nowadays computers are so fast, that doing these effects in software is not a big deal. Just like mixing audio.