PTC, I realize the traditional definition of reverse engineering. However, some 3-D copying services refer to the process of 3-D copying as reverse engineering (But, I think I've already said that). After the 3-D copying is complete they can then render a copy of the copied part using CNC machines or 3-D printers , thus completing the reverse engineering process.

And yes in the traditional sense, reverse engineering was traditionally done to save development costs and garner a greater profit margin for the unscrupulous company that would copy someone else's work. And no, improving a concept isn't copying it. Regardless, making exact copies of a proven design by making a 3-D scan of it and then rendering the product is reverse engineering even if you make it with allegedly better materials.