As always, another interesting and well-balanced presentation. I am easily confused by the variety of terms being used around the world. I have to learn them and I am still unsure of what each level, grade, or category means in a practical sense. Labels don't mean anything unless you have the medical knowledge to support or explain the categories in the first place.
I think we are dealing with 2 different sets of vocabulary - one medical, and the other being social. The more precise the label, the better it is for the medical community to use that label in a more commonly understandable, productive way. Most medical conditions have rating systems to monitor treatment and progress in healing a person suffering from an illness or condition. Since the consciousness of autism is fairly recent in our human development, it's no surprise that the terms could use some tweaking as more is discovered and thoughtfully understood. This process is certainly not over, but we at least have a term that gives the condition an identity.
Your mention of those autistic people who ended up in asylums is a good example of how easy it is to dismiss a person's needs because those needs are misunderstood. Being able to address the person's needs is far more important than the name you give it. I learned about the term "Aspergers" years ago, but I had no clear understanding of what that meant in terms of a person's abilities, struggles, attitudes, or personality traits. I also learned about "autism" as a condition requiring some delicate handling of those who suffered from it. I never connected the two. The terms had no meaning without a clear understanding of what they were in strict medical terms. The variables within those terms also require a lot of medical knowledge. We are not identical in our afflictions and strengths, so we would all have to have personalized labels if we are searching for true accuracy in the terminology used to categorize us as individuals. For now, we have "autism", but if you want to use "Aspergers", that's fine too, provided Aspergers is accurate. The term "autism spectrum" is very useful because it communicates a set of varying degrees within the larger collection of traits and conditions. That needs to be understood by everyone.
Let the medical world manage these issues the way they see fit. If anyone on the spectrum has to explain themselves to anyone, they can do so by explaining the way autism affects them and on a level they wish to divulge or educate those who are interested in knowing and understanding. It becomes very personal.
I believe that with time, the term "autism" won't scare or confuse people like it can do now. The topic is new to the general population. As long as schools and the media deal with it openly and plainly, the term will become as commonplace as diabetes, arthritis, and ADD/ADHD. A rose by any other name... is still a rose.