I know people with multirotor craft that have 5-10km radio range; that should tell you something: at that range there's no way the drone is in sight range, though it is possible (and even common) to have FPV video, but that really doesn't give you the kind of vision needed to avoid all kinds of risks (especially other aircraft, closing at high speed from behind).
Fighting the use of the term "drone" is like trying to change the popular use of "hacking". It's too late, and I'm not sure why it really matters. I don't think anyone is really confused when I say I'm flying a drone what I mean - they know it's not an armed Predator.
It's unfortunate. Assholes like the guy flying this drone aren't helping, either, for hobbyists that want to fly legally and responsibly, which as you note, has been going on for a very long time.
I don't see it as fear mongering, given that both outcomes are bad, and I believe and the public should be aware that because RC tech is becoming cheaper and more popular, more idiots will get their hands on it.
Now imagine what happens if you can get a car up to airline speeds.
Your ignorance of the dangers of high speed collisions exemplifies exactly why this is alarming.
Also, I recommend familiarizing yourself with Airline and Foreign Object Damage before continuing further.
However, you compared them directly to guided, high explosive ordinance that are intentionally, reliably fatal for any sized aircraft. This is not a valid comparison, and is the core problem with the term "drone".
I have had a few pounds of wood hit my windshield at high speed, and while it really scared me it had no long term impact on me or my car. I would not fair so well against a Hellfire missile.
Edit: Impact of 2lb at 75mph ~= 1 Kj. Detonation of a Hellfire missile (9kg of TNT equiv) is 37.66 Mj. That's a four orders of magnitude difference, not taking into account the suitability for inflicting damage.
I'll take that over a missile any day.
RC Helicopters are even cheaper and the quadcopters are so easy to fly, and decent cameras so lightweight, that there are far more people using them than ever before. Suggesting that the current environment is the same as the historical one except for the popularity of the word 'drone' is simply inaccurate.