A few notes on your text, Chris, coming from someone who agrees with the basic premise behind this reasoning.
My work is cut out for me: the name videogames, as descriptive instead of prescriptive, seemed apt enough for 50 years of the medium. The very earliest videogames, from Tennis for Two and Spacewar! up to Colossal Cave Adventure (which challenges the designation “video”, if not “game”) were explicit in their gameplay structure.
Colossal Cave Adventure, as many of the text-based programs created before and after it, do not challenge the "video" designation at all. That comes as a viewpoint which is characteristic of an age of advanced graphical - pictorial - representations; but the presence of scrolling text with which the user can interact is respective only to the manipulation of images allowed by a screen display, and could hardly - if at all - be attained with any other medium in similar characteristics, certainly not with ink and paper. Related as these things may be,
Advent is not a gamebook. In fact it represents a very sizable technological leap, that of preparing computer systems to operate with textual interfaces, as opposed to strictly numeric ones - I underline the term "interface" here.
The origin of the term "video game" is not properly analyzed here, either. One of the most probable origins for the term may have been Baer's research materials and the patent he tried to register, since the goal of his invention was to create games - distractions, interactive pastimes - on a video display, namely the Television. We can say to some extent that the birth of what we today call video games springs from a few engineer's desire to revert or convert available technology into allowing an experience both interactive and markedly ludic. Baer wanted to manipulate the commonest of video displays, the television, to enable viewers to take a participatory stance, though in his mind he always used the word "games" which is perfectly correct in the case of his Brown Box.
I agree that the word no longer suits the diversity and range it comprises, that it is now more than ever before stretching to its limits and, hopefully, close to bursting. As you point out,
Cinema, deriving originally from "registering movement", is far more accurate nonetheless since it was further refined into "movement" alone or referring to "moving pictures", which encompasses a much more ample variety of objects in its ambiguity than "videogame" does, on cause of the specificity of both halves of this portmanteau. When Kenji Eno developed
Real Sound: Kaze no Regret he made neither use of video nor did he create anything but a sound novel, a non-visual form of Interactive Fiction. However we choose to look at it, the term "video" is altogether inapplicable. And this took place sixteen years ago - I say it so you can understand the advanced age of the questions you pose.
As for the subject of whether or not we can call IF a videogame genre, it's rather open to dispute though my own research has led me to believe that it isn't, solely in what pertains to its potential; although in real terms we do speak of a field overly attached to video games, more so than to the realms of written fiction (or literature).
This suggests another characteristic: interactivity. It does not, I believe, stretch the imagination to suggest that videogames are unique among the arts in their interactivty (...)
I'm surprised that you presuppose videogames as art form. You are on the one hand attempting to dissect the definition and question it throughout the text but make no issue of considering it an art form beforehand. Such a consideration should follow this reasoning, perhaps, not precede it. At this point, I'm afraid I was forced to bring my reading of the text to an end, Sir.