To put your words into mine: I am substituting a confusing but
'correct' terminology by a clearer but incorrect terminology. I got
your point, but am still not more convinced than before...

except that I can prove that at least one person is confused by your
"clearer" terminology. Given a question about generating entity
references I gave an answer about generating entity references, assuming
that what was meant was entity reference. Since the original terminoligy
was a bit mixed, you'll see that I did query whether character
references were the intended meaning, but I made the wrong guess and
answered assuming that entity references were required.