According to Muslims, the correct terminology is "Revert". Apparently all children are born Muslim even though babies have no concept of god, religion, supernatural revelations, prophecies or miracles.
Bruzzer do you not know ze wunnerful hadeeth of ze messenger zat all ze baybees are born on ze Islam and is their parents who making them Christians, Yahooooooood, or ze fire worshippers?

Give them credit - there are a lot of Muslims who hate this word (including most converts). Hamza Yusuf once gave a talk - I forget where - where he explained why this word is stupid and wouldn't even be correct from the Islamic viewpoint that they want people to convert to. It's interesting too because people walk around saying "all babies born Muslim!" but then they will also say that even most Muslims are no longer on their fitrah - which is what the hadith is about (this alleged inborn fitrah of new babies to incline to worshipping Big Al).
People shouldn't use the word for those reasons, but they do - and condition newbie Muslims to use it as well - for the exact reason you say: dawahganda. I never liked it for those reasons and this one: it sounds too close to "retard." (A word I do NOT use because of how it was used against people with LDs and Down syndrome, but ... LOL anyway)