I've seen this called Function as a Service and honestly I think using that term instead of Serverless would go a long way to fixing this issue because 1) it clearly communicates what it is 2) there's not actually such thing as serverless since the functions are still running on servers. It's a made up term that isn't grounded in reality. It's not serverless any more than a Heroku Dyno is Serverless.
The first time I heard "serverless" I assumed it was a totally in-browser application.