[grey-area]

It's not particularly offensive, but it does betray a certain ignorance about the geographic extent of England the country.

[Tomte]

And why does German need to perfectly capture the geographic idiosyncracies of other countries? In colloquial usage?

When the distinction is important we can express it, no problem. But when it isn't?

[mynameismonkey]

Because for Swiss people like you, Welsh people like us don't like doing business with Bavarians who call us English. Maybe if you weren't Austrian, you'd understand.