Sure, but the word "hallucination" doesn't convey a cause, just a symptom, and has associated cultural baggage. A new term that destigmatizes what is basically a physical phenomenon might help people to stop "blaming" mental illness on the sufferers, where by "blaming" I mean seeing the illness as a fundamental element of the sufferer's human identity, rather than a sidenote as one might see cancer or a broken leg.
Euphemisms tend to be less specific and more detached from reality, while my proposed term, "spurious neuronal excitation," is more specific and based directly on the physical cause.