"Draw Freely" is also a part of our registered trademark, so changing it is unlikely at this stage.
Of course, I always thought "Illustrator" was a bad name for the proprietary vector program by Adobe. One was more likely to design in it than do much drawing/illustration for the lack of "drawing" tools.
I would have thought the entrants to the contest would have given quite a lot of good examples of how drawing in inkscape is possible. You might be right that the tools aren't The Best™ but I wouldn't say that means it's not possible to draw or that inkscape shouldn't aim for making drawing easier.
I honestly think Inkscape is a great Inker. Take a sketch from gimp or a scan and draw around the lines with clean shapes. Brilliant. So "Ink Freely"? Then there's all the other things you can do with Inkscape, hundreds of ways it's useful in workflows.
So overall, I wouldn't say Inkscape is just a design tool. Some would claim it's not The Best™ design tool just as much anyway.
My 50p / 2¢
Best Regards, Martin Owens