Bedrockgames
I post in the voice of Christopher Walken
I don't agree with your premise that it's misleading at all. Anyone who's got even the most basic grasp of civil or criminal law understands that the word "harm" encompasses a great deal more things than physical injury.
Your inference that "this causes harm" indicates that this is "the most terrible thing on Earth" seems to me pure hyperbole, though I will credit that you are sincere. It prompts a strong gut reaction of incredulity in me.
That it is a legal term though is also part of the problem. I can say I am sincere and my issue with Harm as a term is it the way it gets used on places like Twitter and done of these discussion. It feels like a rhetorical bludgeon (because no one wants to be guilty if causing harm, but often if you dig deeper, there is more room for disagreement)