Not quite.
2D models are suitable for engraving, 3D models were used extensively for modeling by the use of endmills. I used to run one years ago and built cavity's for tons of injection molds from pot handles (wearever pots and pans), to engraved text and pockets and curved surfaces that were way to complex for early CNC's. I made the mold for the Colt Delta elite pistol grips years ago on a Gorton.
We would typically make a template (2-10X finished size) of the part using step methods and then use riffler files to smooth and blend the levels together. We would then mount the template on the template table of the machine, affix the proper sized stylus in the tracer head and the proper size cutter in the other, free up the 2D/3D lock and start cutting the cavity or core that we wanted that was mounted on the cutting side table. To leave finish stock you calculate the finish stock of say .005 per side then multiply it by the cutting ratio say 3X size (.015 x2) and you make the roughing stylus that much bigger which in effect moves the cutter .005 away from the finished wall, you then change stylus back to the original size and trim only the outer sides and bottom. When your template is 3X times the final size then your error is reduced also. If the part comes out small simply change the tracing stylus accordingly. The secret to buying a pantograph is to make sure the spindle bearings and the graduations on the arms are perfect, if the graduations for sizing are wore off, the machine is basically useless.