The question is very simple. Can we buy something with bitcoin? Yes. Can we buy a Dell computer with bitcoin? Yes. Can we buy a windows operative system with bitcoin? Yes. Can we buy hundred of things with bitcoin? Yes. It is bitcoin accepted as a money by multiplies merchants? Yes. Is there that merchants are increasing or diminishing? It is increasing.
Whatever it will be the name that can take bitcoin it serve as a tool which substitute the money or the currency? The name that can take can be whatever you want. But the function it have is the function of the money and the currency.
You harp on the medium of exchange attribute of currency. Unfortunately, there are other attributes as well - unit of account and store of value. Bitcoin is not doing a very good job as store of value. That is why there is a debate here.