Okay ? It can be lib. Just make wayland use it, not be thing every DE needs to. DE shouldn't care about where the mouse movement data comes from and should not need to compensate based on device.
That is a correct conclusion, in the same way that many issues with X features are not actually issues with the X server. Over the years a lot of things have been moved out of the X server into client libraries, or into Mesa, or into D-Bus, or into Wayland...