At first, yes, they were misleading their customers but years of success later, I don't think so. The message they are more so passing is muscles need their food to grow, milk does a body good, therefore their product is muscle milk. The stuff that does your muscles good. They are using the term "milk" for what it's made for instead of what it actually is, which is milk.
That's neither here not there, Phase III using real milk should indeed allow them to compete very well with CytoSports Muscle Milk which is why I am vested here and have two more cases on order. I hope AAFES (I'm in the Army) picks this up and puts it in our PX as that would save us a lot of money on shipping charges :-)