It is a vague name that describes any number of things from a park-flying foamy all the way up to a Global Hawk. Kind of like how "airplane" can be anything from a Piper Cub to an F-35. But it's really more of an issue of how the media portrays the technology, rather than an issue with the word itself.

A drone is any remote-controlled aircraft or boat. There's nothing in the definition of the word "drone" that requires it to be automated.