So, the actual connections don't have much to do
with snooping at
all, but rather look something like this:
<snip nice ascii diagram>
That is, the sequencer sends data to the synth *and*
the synth's GUI.
This is what makes the GUI track the automation.
When automation is on "record", the sequencer takes input from the
GUI as well, and basically records it and forwards it to the Synth at
the same time.
I'd call that snooping. And if a plugin controls another plugin, the host
has to snoop those events, too, or the UI is out of sync.