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The game engine does not need to evolve to change it's name to be "modernised". A game engine is a software platform which by definition means that the software can be modernised, or tuned, upgraded, whatever; while still being called the same game engine.
Gem3 has a different name, because amongst other things, encompasses a totally different architecture, different systems, etc. And an important detail is that it not finished, thus making it both unsuitable for Soldiers:Arena and very costly to port to, was it adequate for hosting the project in the first place. So would gem3 be better? I'll let the common sense answer the question :)