That's true, which is why you wouldn't put P.E. after your name or represent yourself as a Mechanical Engineer etc... No one who knows what a PE is going to be confused by someone calling themselves a software engineer, and audio engineer, or a sanitation engineer.

I understand the other argument that the job title "Engineer" is being diluted, but that ship sailed a long time ago. There are way more people with engineer in their title than there are PEs so I doubt any widespread legislative attempt to change this would be successful. And it's not just software engineers. Plenty of people working as engineers with ABET accredited engineering degrees haven't passed the PE exam either.