I think we might be thinking about Serverless slightly differently. To me serverless is not just AWS Lambda. It's a broader theme that encompasses Function-as-a-Service technologies like Lambda and Backend-as-a-Service technologies like Firebase & Auth0.
Combining FaaS, BaaS, and using certain techniques and patterns is what makes Serverless. As a developer I am plenty aware that there are servers - I don't feel that there is any voodoo or black magic. However, when someone says that they have a serverless system I immediately understand what they are trying to say. They are saying that they don't need to manage, provision, scale, and look after servers. Honestly, the world "serverless" is a lot less confusing than "cloud".
I am not sure what you mean by "there is still a server fronting the whole thing". You don't need to scale the API Gateway yourself (again it's a managed service). Same goes for Azure functions, Google Cloud Functions and OpenWhisk as they all have HTTP listeners built in.
I understand where your thinking is coming from. There was this article that tried to address it: https://serverless.zone/serverless-is-just-a-name-we-could-h...
Edit: fixed sentence structure.