I do cringe when I hear someone use the term "gauging" to reference stretching, but I will only correct them if they are my friend or if they are asking for advice - I will not correct random strangers, because I know better than to think that anyone will believe that a random stranger knows more than they do. People are very egotistical that way. :)
I have yet to hear someone on the street say "stretching/stretched" rather than "gauging/gauged," though I have had one person refer to my jewelry as "plugs" rather than "gauges," which is what most people say. Like Amanda, I have come to the sad realization that this is what today's crowd is calling stretching, and no amount of "Actually, it's called stretching" on our part will change that. However, I have faith that the gauging trend will blow over within the next decade, and eventually, with enough effort, "stretching/stretched" will resurface as the default term to describe the remaining big-eared folk.
So far, I have yet to meet a person who uses the term "gauging" and still stretches correctly. Every single person that I've met who "gauges" their ears does it entirely too fast (and tends to underestimate or brush off the severity of blowouts, catass, and tearing/bleeding). This has caused me to develop a biased opinion about "gaugers."
When I first started stretching my ears, I knew the term "stretching" from watching documentaries (etc) discussing tribal/native earlobe stretching. When my ears were at 14g, my friend asked me if I was "gauging" them. I had no idea what that meant. If I had chosen to listen to my friend(s) and continue calling it "gauging," taking their advice about how often one increases one's plug size (my other friend told me that she "gauged" her ears simply by taking "an eight gauge and just pushing it in there until it finally went through," which "hurt like a motherfucker but worked"), I would have ended up as one of the disgusting-eared "gauging" crowd.
However, I didn't do that. I didn't just take someone else's word for what I should do with my body - I researched online and found various online sources, including BAF/the BAF forums. Here is where I learned how to stretch properly (and that "gauging" is not the correct term, which I already suspected).
My point here is that those who do the right research know that it is called stretching, and will use that term. Those who do the wrong research (I'm not saying they don't do any research, simply that they don't find the correct information but still use it regardless - it's like using Wikipedia for an important research project and not using anything else) will call it "gauging" and often do it incorrectly. These people I have little respect for, as I am a personal testament to the ease of finding correct information and taking care of your own body.