Yes, we are ultimately making the same point - the option name does not represent the action, and you could submit a feature request to change it.
However, there's a small glimmer of doubt when you use the word 'occurrence' - if you drag an element onto a diagram as (under the current parlance) " a Link", you are not seeing another occurrence of the element - you are seeing the original element from another viewpoint. If I am in a room and (for reasons we had best not explore) you look in through a window and then through another window, you do not see two occurrences of me. You see ME!
To extend that example, if you looked through one window and saw me, then looked through the next window and saw a reflection of me in a mirror, the reflection would be an instance. You could have many separate mirrors and reflections, and therefore many instances, but there is still only one me (and thank goodness for that!)
Now we have really stolen this thread for other purposes, so perhaps you might also clarify - by feature request - whether or not there are specific dialogs that do not resize as required, or re-present data as required?