Earlier quoted context omitted.
I totally understand your point and I think I agree, except—well, the setting says “disable cookies”. It should do what it says. If the goal is to disable all persistent information, the setting should be called “disable persistent storage”. Of course, I also know why it’s not called that: a lot of people know what cookies are at this point, at least relative to the number who'd understand “persistent storage”. A tog…
“Cookies” is shorthand for “persistent storage” because nobody outside of web developers knows other methods exist. When people, laws, banners, etc. refer to cookies, they mean “any technology that stores information on the client side systems”. Whatever mechanism is used is irrelevant to the meaning/concept.
But at least some of this conversation revolves around what the public perception of cookies is, and as for that, I really don't know. I wouldn't presume that anyone else knows either unless they've conducted a poll.