I can appreciate the argument, but it still bothers me. Don't you think there's an argument to be made for educating the user, rather than reinforcing their misunderstanding?

localStorage is just one of many ways to track users. You could also store data in indexedDB, the new File API, installed service workers, or even the browser cache if you're clever enough.

If we start lumping all forms of tracking (storage) under "cookies", that's going to get real messy, real fast.