I write frontend code and backend code and do compiler stuff for fun and I don't find it confusing. "Compiler" means completely separate things in so many contexts that I get the general picture and always need to look deeper to truly understand. Just because it's a generic term doesn't mean anyone should not be allowed to use it IMO.
You are right and I phrased my comment the wrong way.
The confusing part is not calling this process compilation, the confusing part is now calling something a compiler for which the consensus previously was calling it a pre-processor. Now I started to wonder if there is something new that I wasn't aware off, like a browser support optimized binary style format that we can compile into.