I would agree there is an issue there with the term being diluted to the point of almost meaningless and how licensure should address that problem. However if they were to use another term, that term would likely get co-opted and diluted as it would be a coveted term (the reason it got diluted in the first place as it had accrued perceived public value and trust).
I will take small issue with your second statement - there is a difference between those two programs at Uwaterloo:
Mainly comp sci you have a lot of spare time and have a lot of electives and more flexibility in your coursework. Computer engineering you have a specific regime of classes that you need to go through - specifically in physics, circuits, math, chemistry. It the SE program has a higher bar to get into it as a function of its program size being smaller. Both have benefits and drawbacks but I wouldn't call a comp sci major a professional engineer unless they passed the PE. There is a component of physical sciences in the engineering program.
My personal take is that professional engineering - has an element of understanding the physical environment and the mathematics that we have used to build civilization (such as physics, math, circuits and chemistry) and you have an oath to public safety above private motivations.
The only difference between a UWaterloo Software Engineer major (licensed engineer) and a UWaterloo Computer Science major is that dumb iron ring.
Stay classy Canada.