It's not self-driving, it's autopilot. That's the contrast they're drawing, and it actually IS clear to the car-buying public. A car is the second biggest single purchase you're going to make in your life, so people aren't going to /not/ figure out what the term means before buying the car.
I definitely think it's worse than cruise control as you suggest. Cruise control systems control your cruising speed. Autopilot has way too many asterisks right now.
Also, airplane autopilots do fly the plane for you (including take-off and landing). They can certainly do so more safely than Tesla's "autopilot" does. A lot of this has to do with the aviation environment being much more controlled.
This whole comment thread seems like a distraction in the form of a non sequitur, though. If Tesla is falsely claiming capabilities that their system does not actually possess right in the name, and that causes deaths, then they could easily be liable, and at a minimum they need to stop.
This very article describes a situation where the name of the feature doesn't seem to have played any role in the accident.
"Autopilot" is no worse than "cruise control" in this regard.