That’s why my mantra is “Bitcoin NOT Crypto”..
there is nothing wrong with your thinking. but the term is very popular nowadays and most will accept Bitcoin as part of the term. So there is no need to strongly oppose your or your friends' thoughts. just keep it to yourself and enjoy it.
however, Crypto Exchanges or Crypto casinos still accept Bitcoin and everyone enjoys it.
I also think that there's nothing wrong for using the term crypto in general. It was made so that normal people who cannot get to understand what digital money is would be able to. It would be easier the describe and introduce what Bitcoin is and all other Alt coin as cryptocurrency. Both aims for decentralization of every transaction. That's just the root of it.