Anyone can call anything whatever they want, it's a free country after all. However, when you try to say that some schools are dishonest if they call themselves martial artists, that's when you're going to get arguments. This is due entirely to the fact that you have created arbitrary divisions with no basis in reality. I've seen a number of 'self defense' schools that were hopelessly inept in their approach and training. Youtube is full of them. I've also met several judoists that would (and have) wiped the floor with an attacker in a real self defense situation. You can't call one group of martial artists with real self defense skills dishonest because they train for competition. It's just silly, and does smack of elitism and an attempt to say "I'm better than that group" just on the basis of what a person does, not the results.
Just my opinion ...
The bottom line is, who cares if other judge whether or not you are or are not a "martial artist", whatever that term means. It makes even less sense if the person doing the judging isn't even from the same style. Whenever I hear those kinds of comments, I think of some potbeliied beer drinker sitting in an arm chair in front of his tv in a wife beater criticizing peyton manning. Does peyton manning really care, or is he functioning at a much higher, much different level? And which would you rather be, the beer belly guy in the wife beater commenting on nfl players or peyton manning playing in the nfl?