So, I'm confused about this argument. What do people think airplane autopilot does? Do they think it takes off, lands, navigates, and avoids unexpected obstacles in its path? Like honestly, people do know actual autopilot doesn't do any of that, right???

Of course the autopilot doesn't land the plane; that's what the autoland system is for. Autoland has been available on some planes since the 1970s.

Not a whole lot of unexpected obstacles in most flight paths to avoid either. However, collision avoidance systems are available, I don't think they're commonly connected to the flight controls directly though (I could easily be wrong though, I only fly an armchair)

the term is literally: automatic pilot. So in the context of a car? Yes, I would expect it to navigate turnings and other obstacles.

Because that's how they sell cars, and nobody has gone to jail yet.

They should change the name, but the name is correct, because that's what autopilot means. But because everyone has the wrong definition of autopilot in their mind, they really should rename it.

It's the right term, but that term has evolved in the public's mind and shouldn't be used anymore even though it's accurate.