The name is blatantly misleading. The very definition of the term “incognito” means having one’s true identity concealed, so I can’t blame anyone with comprehension of the English language for being misled at a glance. However, like anyone else here, I do not expect this to lead to any actual progress toward more privacy.
I strongly agree, the name should be something that better reflects what it does. Evidently, many people are being misled by it.
Maybe that could be grounds for a lawsuit. After all, deliberate manipulation of users to leech as much data as possible is certainly not something Google is afraid to do, so it stands to reason that this is what they’re doing with incognito mode, too.
The names of the similar features in other browsers aren’t much better but most browsers are pretty clear about what it protects against and what it does not protect against.
Chrome mentions that it doesn’t hide you from the websites you go to on the incognito window new tab page and their documention:
https://support.google.com/chrome/answer/95464
They’ve also had mentions that it doesn’t protect against everything since at least 2013:
Going incognito doesn’t affect the behavior of other people, servers, or software.
Edge mentions it on their InPrivate window new tab page and their documentation:
Firefox mentions it on their private browsing window new tab page and their documentation (and highlights it actually):
https://support.mozilla.org/en-US/kb/private-browsing-use-firefox-without-history
Safari doesn’t mention it in either place from what I can tell:
https://support.apple.com/guide/safari/browse-privately-ibrw1069/mac