It doesn't matter what a "regular person in the street" thinks, from a safety standpoint. What matters is what Tesla owners think (i.e. the people driving the cars). Are they fooled by the term? Search around on TMC, /r/teslamotors, or any other owners group, and you'll find it's pretty universally understood.

Additionally, the car reminds you of its limitations every time you use it. And it disables if it doesn't detect torque on the steering wheel, or weight in your seat, or the seatbelt clipped in. I understand how someone could be mislead by marketing early in the buying process. But by the time you get to operating the vehicle, it is borderline impossible to use Autopilot and still believe it requires no human attention.