I don’t really think “serverless” is supposed to mean “no servers are involved in hosting your code”. It really is meant to mean that you/your engineers do not need to worry about servers, because as you’ve said, you don’t need to worry about them. So it’s _as if_ there were no servers, to you.

IMO, any singular word applied to a software engineering concept wouldn’t paint the full picture. But using AWS services as an example, I don’t think it’s intentionally misleading, or of malicious origin, to describe Lambda & Fargate as “serverless”.