While I understand and appreciate and agree to some extent with your assessment of dpi, it is not entirely accurate. As I've mentioned I have a background in reprographics from 15 odd years ago as well as some formal training in the area of computer graphics. This dpi/ppi argument has been around a long time and unfortunately those that don't fully understand it are in the majority and even the application designers get it wrong sometimes because of the way the older software worked and used the terms.
Here is just one of many links that you can find on the subject, but I picked this one specifically because it has print shop links as well. Please understand that I'm not trying to be a jerk about this, and I agree that we are essentially saying the same thing, and in this instance it isn't important as the software obviously is doing it correctly, but we really should be using the correct terms and it is always good to learn something new. I've talked to many reprographics folks over the years and many of them get this wrong because they are usually self taught or don't have the diverse background that would have introduced them to the differences in the terms. Not to mention, as I stated, the software itself is misleading.
http://www.rideau-info.com/photos/mythdpi.html
I would encourage everyone to investigate this further, and if we want to discuss it some more, since it definitely falls into the realm of this site, I think starting a new thread would be a great idea.