You are and they are.

And BTW, their success probably depends on the misleading wording, at least initially. If it were done as you say from the very beginning, they would probably have much less traffic now.

The art of building a successful Web 2.0 company seems to do whatever is required always staying a hair's width away from getting sued. Threats of a lawsuit are great for publicity just as long as they don't materialize into litigation.