Ref the bootlegging issue - on the one hand Ady, I agree with you, a shameful cashing in on the talent and work of others. However, the flip side is that without the bootlegging (particularly in the 70s) would many, if any of these recordings have had the coverage they have gained over the years? Probably not.
On the main theme of whether the Italian folk (or anyone) else want to stop calling it Northern, well if it wasn't for the exposure of the Northern Soul scene, would they have come across all that great 60s soul music? Probably not. Are they going to differentiate between genuine 60s soul and white, pop stuff? Probably not. Does anybody in the real world really care. Undoudtedly not.