In general, I agree, and I try to be consistent in calling them signing devices, rather than hardware wallets, but language tends to follow the crowd, and for better or worse, calling them hardware wallets or cold wallets has already stuck with a large amount of the community, including the more popular Bitcoin educators, who will be a major influence on new folks coming in.

Examples:

nostr:nprofile1qqspnzgrfett3asxcuj0gksje6z2zxzpvgd27uvz58m9vsuqh8zzw6cpzemhxue69uhhyetvv9ujuurjd9kkzmpwdejhgqgjwaehxw309ac82unsd3jhqct89ejhxqg5waehxw309aex2mrp0yhxgctdw4eju6t0rjj54p titled this video on the ColdCard Q much like he has titled other similar tutorials: "Coldcard Q Bitcoin Wallet - Beginner Tutorial." Moreover, he opened up the video saying, "The ColdCard Q is a hardware device that allows you to secure your Bitcoin safely offline."

https://www.youtube.com/watch?v=FiNCG-7EN4A&t=8

Though I am sure he knows very well that "wallet" probably isn't the most technically correct term, he also knows that is the term most new folks will be using when they search for tutorials, and thus the term ends up reinforced.

Likewise, nostr:nprofile1qqstnem9g6aqv3tw6vqaneftcj06frns56lj9q470gdww228vysz8hqpz4mhxue69uhk2er9dchxummnw3ezumrpdejqzrthwden5te0dehhxtnvdakqz9rhwden5te0wfjkccte9ejxzmt4wvhxjmcjgxv3n has advertisements for ColdCard on his podcasts where he calls it a "hardware wallet," reinforcing the term in the community.

https://fountain.fm/episode/wgkqiF4AAXgvn4PPowPO

And I have heard numerous people, smart people who know this isn't really how it works, talk about one of the greatest benefits of Bitcoin being that you can take your Bitcoin with you in your head when fleeing a hostile country by just memorizing 12 words.

So the ship has sailed as far as changing the term we use, except to personally help people understand what it actually means, when they are ready to dive into the technical aspects.