Yeah, it's a stupid term. I wish people would call it "Free Software" instead. It's not that much harder to type, it's more meaningful, and it's not a string you put in your teeth.
Most people are confusing "free software" with "open source" largely preferring (sometimes without realizing it) the latter, which (as they hope) translates into "free stuff without any obligations"
Actually people call it FLOSS precisely to avoid choosing between free software and open source ... FLOSS means Free/Libre/Open Source Software