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Engines in the beginning don't get licensed a lot in my experience, but they are useful for making your own games better. Later on they do get licensed and provide decent income.
License add extra sales to games. I don't think there is a lot of strategy behind the feature right now, just add a license and you will get a sales boost. No disadvantage except the cost of buying the license.
I'm not sure on the exciting letter, I haven't played a lot recently and have not gotten that letter. So someone else can maybe help you with that.
Did the fan letter say "Some fans think that the story of the game [Title] was not exciting."?
In that case, the correct answer is to increase the "Story" slider.
If not, please write in which language you are playing.