Non-human humans?

So I've been watching let's play of Twilight Princess because I'm probably never getting a platform that game is on. And I was a little baffled that Link was called human in some dialogs despite his kind in previous games not being humans as far as I can tell, not to mention he and his people have "elf ears".

So, I was wondering what to label games where non-humans are called humans or similar where something that "clearly" is not something is called it anyway?

Generally speaking this would be misleading terminology, but I don't think being that generalist with it is good idea.

Materials from Nintendo and Zelda authors indicate that there are both Hylians and Humans in the Zelda universe. Especially in Twilight Princess but they are also indicated in the manual of the original NES LOZ. The Link in Twilight Princess has been adopted by Humans. He thinks of himself as Human. Undoubtedly his speech, mannerisms, and dress communicate that he is human despite his pointed ears. People who call him human must think of him as human by choice or perhaps also that he is mixed-race (neither of which seems to have a any stigma in the Zelda universe).

Related to this is blatant misuse of terms. Like Gorgons in early Might & Magic RPGs were scaled bulls instead of "ugly women".