Indeed, now E-mu is just the upscale arm of Creative Labs... but CL did let them run with instruments for a good while after they acquired E-mu in March 1993. The last E-mu hardware (the PX-7 command station, plus a couple more Proteus2000 expansion ROMs) was released in 2003. This is around when the first generation of the Proteus X/Emulator X software crept out the door (late 2002/early 2003), and pretty much put the nail in the coffin for E-mu instruments. From there on, they've been strictly PC hardware and software (well, plus a studio monitor).
For a great article on E-mu history (well, up to September 2002), try this Sound On Sound magazine article:
http://www.soundonsound.com/sos/Sep02/articles/emuanniversary.asp
Note how fast CL threw out one of the founders (the morning after the deal went through)...
Along the way, Creative Labs also tried to fold Ensoniq into the E-mu branch of the company... then killed off the name completely.
Yes, with great moaning and lamentations, I'm afraid we've seen the last of the "old" E-mu. From here on out, it's only E-mu in name, not in spirit (but admit it... who wouldn't kill to get a full G-chip, H-chip, R-chip based sound card for their PC, with all the filters that were in the Morpheus and UltraProteus? A full on E-mu instrument in a single plug-and-play card. It would be freakin' brilliant! But would Creative ever let them do it?)