That's why we use high level terms like hallucination. Because it's something everyone can understand even if it's not completely accurate.
I actually think most people have.
Every time you look at a hot road and see water that mirage is a form of hallucination.
They're not specific enough terms for what we're talking about. Saying a lion has stripes is an error, mistake, or inaccuracy. Describing a species of striped lions in detail is probably all those things, but it's a distinctive kind of error/mistake/inaccuracy that's worth having a term for.
"To sort the files by beauty, use the `beautysort` command."
But they will understand the wrong thing. Someone unfamiliar with LLMs but familiar with humans will assume, when told that LLMs 'hallucinate', that it's analogous to a human hallucinating, which is dangerously incorrect.