This is why I think it makes sense to have explicit, defined categories for "physical recalls" compared to "OTA recalls", e.g. if something is defined as an OTA recall then you would get a specific kind of alert in the dash that says that an update contains a recall fix, along with detailed info. Most drivers would be more likely to see a warning if it came directly in the car's dash compared to a piece of physical mail that looks kinda like junk mail.
I think an additional Recall message in the dash would be a good idea. I wouldn't change the name, it's an established name and everybody knows its significance. Wether the car needs to be returned physically is up to the car manufacturer.
I think most of the people complaining about the semantics are shareholders, they are just fine with "hanging up" their phone etc.