Yeah, I generally don't count on much gravity contribution from steeping any grains. I dont' really know which ones require mashing and which don't, I confess.You would need to mash it if you wanted to convert the startches into sugar. But I believe that if you just wanted flavor and color from it, steeping should do it.
An emulsifier is something that creates / keeps chemicals in an emulsion - in other words it keeps the concentrate from separating from the water.Here is my Haddon House brand Liquid Smoke Ingredients list -
Hickory Smoke Concentrate
Polysorbate 80 - Wikipedia, the free encyclopedia
It is classified as an emulsifier. I don't have any idea what the rest means, but I don't see it described as a preservative.