Yep, Tor is an anonymity service, not a secrecy service. Website owners can still see that a Tor exit node connected to them, your ISP (or VPN provider) can still see of you connect to your guard node, and your exit node can see the websites you visit. (Though if you use HTTPS, they have no idea what you actually do on those sites.)

One retard got caught sending a bomb threat to his own school because he literally connected to Tor using the school's own wifi.

Personally, I think educating the wider public on recognizing and understanding Tor traffic has absolutely zero affect on the fundamental anonymity of the system. Security through obscurity is not security at all, and maintaining an open and helpful public appearance is incredibly inportant for a service like Tor.