While this is true, outside of some specialized historical critique fields the most common usages of this term are in forums/literature of the libertarian and free market anarchist bent.

In those places its a short hand for the idea that government as currently practiced in the west is clearly bloated and corrupt beyond repair, and the only reason every doesn't agree is that they are bamboozled by some Polly-Anna version of history.

That statement is not clear and needs further backing up to many of us, who do not subscribe to the "Whig History" model but also don't think governments are objectively bad in all instances.

Whether you knew that subtext or not, you used the term in the same way, to argue a similar philosophy, so it's not at all surprising that someone called you on it.