In my opinion, it is not Einstein's equation. It's Newton's equation applied to the speed of light. It's not v=0 but v=c. It just so happens that mc² is also the potential energy of a body at rest.
Yes, a photon's energy is all kinetic but so what? Newton's equation specified massive bodies.
Again, the 1/2 is BS but the winner of this debate is still to be determined.