one slight benefit i see is that since bitcoin's ARR is equivalent to its CAGR (all paments during the year are of size 0), then you can compare Bitcoin's ARR to a company's CAGR and call them both CAGR for simplicity's sake.

Still, I agree that its sloppy.

Also, some people might just not know the difference and think that the compounding is just a yearly phenomena

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Agreed. It’s misleading though if someone is using the CAGR math which includes the annual returns while simultaneously trying to wrap their heads around BTC, which truly is a different beast!