Have you been reading Caroll Smith again?
Engine braking is a real and useful driver aid. Of course, if all four wheels are being braked (by the discs/pads) as much as they can, then any engine braking will lock them up. But in real life you never ever brake like that - load transfer, surface irregularities, driver irregularities, dynamic tracks that are slightly different lap after lap, and the NEED to change down gears means that you always have something in reserve, generally at the back of the car. By changing down and letting the clutch engage you can either use it to improve car stability (try turning a car on the limit with it in neutral to see how hard that is!), or to aid braking. Some people rely on it more than others, and it doesn't always cause wear to dogs or clutches if done with skill (i.e. not by me).
When downshifting and heel/toeing the main problem isn't the nose DIVING, but the nose going UP. Many drivers, myself included, reduce brake pressure when touching the throttle, increasing braking distances and slowing lap times. The last thing ANY driver learns to do properly is brake (and standing starts). I don't think novice or pro drivers would ever make the nose dive MORE whilst blipping the throttle, because then it would be REALLY obvious how far from the braking limit you are.
In many ways you are not wrong. But not necessarily for the right reasons.
And you are right that doing something for a long time doesn't mean you are doing it right. But engine braking isn't as bad as you think.
P.S. I'm a graduated Mechanical Engineer now you mention it. I don't see what that has to do with this thread though, as no Engineering course on the planet will teach you about race car gear changing techniques and pitfalls.
P.P.S If engine braking can be used to slow the tyre speed in wet/icy conditions, how does that differ from dry conditions? If you can slow your tyre speed in the dry, surely you can do it in the wet/ice. You've just contradicted yourself mate