"dol" refers to dolphin, the development name of the gamecube. applications on gamecube (and wii) have the filetype ".dol". the emulator is called dolphin emulator because well it emulates dolphin (the gamecube). the emu actually predates the wii, crazy stuff.
This is really fun! I would suggest adding screen filtering like in the final version of Pizza Tower, it gets really blurry on my display and disorientates me a little bit. Also if you guys ever add a mock pizzelle character make it like doodlebob because she looks like spongebob