I guess there's something valid to what you're saying, but at the same time I generally think about these things in scales of gray and not in black and white.
What if someone comes up with a new technique (or new material) for manufacturing paper. It's not technically the same material being used in the product, but everything about it, and everything about people's experience with it, is exactly the same as their experience with and uses of "paper". Should they be forced to stop using the word "paper" on their product and start their advertising pitch with "please buy our 'something that is flat and white and you can use it to write things on. But it is certainly not paper' product, in the same aisle and probably on the same shelf as the real paper products"
and come to think of it, by taking a hard line approach we may be asking for a "naming crisis" (a marketing company's wet dream) and making things unnecessarily complex for consumers. Think of all the different names we'd need to start giving fruits and vegetables. Well it's yellow, not red. So it's not an apple. That has oats in it? It's certainly not bread.
We all know how difficult / expensive it is to educate consumers on a new product. Why create artificial barriers to entry for startups or companies trying to do things a little different? "A little different". We're not trying to call spaghetti moon rock, and we're not saying it's ok to market napkins as beer.