Be that as it may, I honestly don't see what difference that would make in regards to OP's point... While it is spmewhat rather ironic, their argument over choice of word(s) in this particular situation is - imo, anyway- not one of semantics, but more of localization.

Either way, whether this is a language selector or region switcher (or any variation on such a theme for that matter), I believe the point OP was - correctly, if you ask me - making is: Whenever a UX/UI element is needed to prompt for proper display language, each language should be displayed however it appears in its native tongue as opposed to how it appears in whatever language is currently selected.

As an added bonus, this also solves the problem of a user inadvertently changing the language (or forgetting to lock their workstation when leaving briefly and returning to find it changed to "help them remember to lock their station when not in active use" allegedly... not that that's happened to anyone I know or anything) and being unable to change it back due to not knowing how to spell "English" in Japanese, for example.