Yes, it doesn't make sense. Do Mexicans/Canadians/Brazilians/etc. want to be called "Americans"? I wouldn't like it if I was called "Eurapean" because 1. it sounds stupid 2. completely obliterates all the differences between Eurapean countries. Calling me "Eurapean" would be a (very) minor insult. It sounds like the other party thinks I have the Eiffel Tower in my back yard, Big Ben down the street, the Coliseum next to it and I'm happily chatting in German, French, Italian, Romanian, Hungarian and Norwegian with all my neighbours on my daily basis. For the same reason, I cannot understand how somebody could refer to all people in two continents as "American". It makes way more sense to use the word to refer to the people who live in the same country and that country has "America" in its name.