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I know it feels easy to armchair regulate but it's not usually that easy. Like if you keep current milk regulations but then let people add a word before milk to escape the rules (to allow oat milk for example) then the dairy industry will pull shit like "pure milk" and "super milk" to escape the rules. It's a cat and mouse game as soon as you start adding exceptions.
Milk is one of the longest regulated foods because the dairy industry misbehaves so much. The industrialisation of milk was so bad it caused tuberculosis outbreaks among other things.
I'm not saying there isn't a good solution, there are always many good solutions possible. All I'm saying is not to forget that there is a reason the word milk was regulated for so long. Whatever exception is carved out for almond milk has to be well constructed enough not to weaken the current milk standards, yet broad enough to allow for any variety of plant based milk and that's going to take some serious expertise. Enshrining plant based milks in a well thought out regulation is going to be the best way to stop this whole "only animal milk is milk" stuff. Until then the dairy industry is going to keep using the regulation to its advantage whenever it can to keep others out of the market.
But that's not how it was framed at the courts at all, proven by the fact that all the other product names containing "milk" were considered okay. It was specifically argued that customers could be confused to accidentally buy the vegan variant. Based on your arguments "coconut milk" should be problematic, but it isn't. Soy milk and almond milk could have been grandfathered in, but they weren't, and the reason very specifically was pressure from the dairy industry targeting their competition.
I don't know what's confusing.
1.A regulation was created to control what you can and can't put in the product called "milk" for the good of the customer.
2.The dairy industry used the regulation that was built to restrain them to keep vegan milks out of the market dishonestly using the "for the good of the customer" argument.
3.If someone can fix the regulation to allow both well regulated milk and non dairy milks then it'll put an end to this bullshit.
Where have I lost you? Just because 2 happened doesn't mean 1 didn't happen first. In fact 2 would have been a lot harder if there wasn't regulation controlling the word milk in the first place.