The name is actually a fairly good one. It is black -- in General Relativity it is really black. When you apply a mixed kind of GR + Quantum Mechanics it's a very very dark brown. But like the t-shirt says, it's as black as anything gets in our universe.
Is it a hole? Well, no, but again, it sure looks pretty much like one. In terms of spacetime, spacetime curves right down to the singularity, the Ricci scalar goes to infinity and the curvature tensor blows up and anything that goes inside r < 2GM will fall right into the singularity. So although there is no "hole" like a hole in a fabric, or a doughnut, it is very much like an extremely deep "hole" in the ground.
I think the name's OK; and it aggravates dumb@ss racists, which is a bonus: http://www.youtube.com/watch?v=oc1zGRUPztc
Then I'm on board too.