For some disciplines like Software Engineering, I agree.
For other disciplines like Civil engineering, the term has not been watered down. No company would hire someone to certify designs who was not a P. Eng because they are required to employ a P.Eng for this by regulations/law.
This problem has come up because the government/PEO has not reacted to the changing engineering landscape and don't require positions like "Software Engineer" to be filled by an actual P. Eng.
Companies made the title worthless. I don't see how it's fair to fault the person in the position because there is a double standard applied to individuals and companies regarding the term "Engineer"
Apply the standard both ways. People cannot call themselves an "Engineer" unless they hold a P.Eng and companies cannot hire anyone but a P.Eng for an "X Engineer" position.
The meaning of engineering on the other hand has been watered down to be meaningless. There are no professional standards and no control on what companies represent their staff to be. It sounds prestigious as a title, but that’s about the end of it.