Selective breeding can create completely new traits as well, look at dogs and all the different breeds. Genetic engineering doesn't have to pull genese from other species at all it really depends on what you are trying to make.
Bringing dog breeding into the discussion is not such a good idea IMHO. Because dog breeding is notorious for breeding into the wrong direction. Take the German Shepherd for example. It used to be the first choice as a track hound or sniffer dog. The excessive mania of creating "pure pedigree" dogs with certain physical attributes has nearly ruined the whole race, though - and not only that race.
Police and customs here have almost completely stopped using German Shepherds. They switched to other races and half-breeds instead. German Shepherds have become worthless for professional use, because they have been turned into status symbols for misguided dog lovers.
You don't need genetics to create mayhem. Classic breeding and human vanity can be much more damaging.
Besides - I don't know if it has been mentioned yet - but "classic" breeding of seeds includes exposing them to radioactive irradation to provoke random mutations. Just saying...
The biggest mistake the human race is doing over and over again, is underestimating the complexity of nature. Whenever you point at some failed intervention in nature, you hear
"We didn't know 50 years ago but we know better now". I guess the same thing will be said in 50 years again, too.
The human race is still doing trial and error with nature and nobody can convince me, that people actually know what they do. Take fracking for example. Sounds good, until you get to know, that even the chemical industry, which created the chemicals, has absolutely no idea whatsoever, what side-effects their chemicals in the ground may have in the future. They optimized them for their purposes and nothing else.
Well, I guess we will know in 50 years or so...