Bourbon only being called "bourbon" is a matter of a law in this country. I'm not sure what would prevent a whiskey distiller from calling his whiskey "scotch whiskey". I'm guessing the only thing preventing someone outside of the Champagne region of France from calling their wine "champagne" is tradition. Obviously, pure speculation on my part.
Couldn't agree more. I'll drink Jack, if I'm desperate. It's not swill. That said, as with most things, you get what you pay for. Woodford Reserve =

.
Zod