I don't really think that the word itself really matters that much anymore, as long as the perception of the activity connected to the word is reasonably accurate.
I'm quite happy with it. Generally when I use the word 'bushcraft' to people who aren't 'into it', they understand what I mean, because they'll say "really, so you're like Ray Mears". And I will say, "umm..yes, sort of - only not as good".
The fact that they've seen Ray doing it on the telly and he seems like a nice well adjusted man and not some sort of "SAS wannabe survival nutter" piques their interest - from here I can get talking to them about the wider aspects of woodcraft, firelighting, primitive tech., shetler building, foraging / food gathering, tracking / nature observation etc etc......
I expect there's a Backpacking forum somewhere on which there is a discussion amongst a group pf backpackers about how they don't like the word 'backpackers'.
The label itself doesn't really bother me unless it carries with it a 'negative' connotation.
I'm quite happy to have myself associated with the general public's perception of what 'bushcraft' is.