It is true that the concrete effects of this option are disappointing given its title. However, it does correspond to functionalities that are extremely useful (even mandatory) for those who use a home cockpit, including:
- The elimination of movements and vibrations (absolutely essential)
- The elimination of undesirable actions on the view and instruments (good to have).
So the feature should definitely not be removed, even if there is much room for improvement !
As for renaming it : indeed, for now, this option could be renamed to something like “static view,” to better represent what it currently does… BUT having something in the interface that at least evokes the notion of a home cockpit is still good to have: it at least ensures that the issue is present in the developers’ minds, and why not spark curiosity or even expand the number of MSFS users for a home cockpit 
As for improving it: it is indeed extremely unfortunate that this option has currently no effect on the visibility of the interior cockpit, which you would often want to remove when flying a physical cockpit. But it must be recognized that designing this feature is not as straightforward as it seems, especially because from one home-cockpit to another, you might not necessarily want the same elements to appear. For example, in my case, the windshield (with its various visual effects) and the wings should remain visible, but maybe that won’t suit everyone. And of course, this also depends greatly on the 3D model of the virtual aircraft, both technically and functionally.