The device is what's controller sees on the cable. Converter is a bridge between the device interface and the device implementation, it is a device from the IDE controller's point of view, and must behave as a device. I've checked with ATA1, the only time when the device can drive that line on the cable - is when it is configured to output "Spindle Synchronization", all the other uses are inputs.
The converter can do whatever CF needs on the PCB, but not drive the cable line on behalf of the controller.
Moreover, the signal from pin 28 does not go anywhere on the PCB. Whatever CF needed for initialization - this had nothing to do with pin 28. The pin just sits there, in a row of GND's, not being connected to CF card at all. Cutting that pin from the ground on the connector and not losing CF functionality just proves the converter does not make use of that pin in any way.