The understanding you provide is very appropriate because when Bitcoin can be used or utilized in several things, it does not mean that we have to call it a certain currency because it can be utilized by its users in certain things such as war and so on. For me, Bitcoin is still Bitcoin and does not deserve to be equated with any currency in the world even though Bitcoin can be used to buy something and can be exchanged for all currencies in the world through any exchange. So considering Bitcoin as a war currency is very inappropriate and for me it is a mistake for those whose understanding is still quite limited.
Yes, we can't call it a "war" currency, but the reality is that if we call it that, all the time, then people will think of it as much as they can, so it would be used that way. I rather be calling it war currency than gambling currency or drug currency. You may ask why people would call it a drug currency or gambling currency?
Well at the start of bitcoin world, it was used to buy drugs, at silkroad, and that's how everyone knew bitcoin at the start, then we moved past that, but every casino started to use crypto, so we were known as gambling money too. Nowadays banks and investors are using it, so we can say that it's an investment asset, and you should call it that, but still, war currency is better than the previous names it had.