I don't see how this is fooling the user. Its pretty direct in stating what's happening and provides a link directly to the additional settings.
I suppose you have no problem with people calling things purchase when they mean short-term rental, either.
Do you really think it's called "off" when it's not off for any other reason than to fool users? They could make "off" actually mean off very easily.
Misquoting and falsely assuming things of others does a great disservice to your argument.
I've found the scanning menu by searching for it. This is the only place that seems to mention allowing apps to scan Bluetooth while Bluetooth is off. It seems to be defaulted to disabled though.
The only way to get freedom back on Android is to either run a very old version (bad!) or undo all the bad changes in an AOSP fork (difficult).