The term was just carried over from the military coined "fly by wire" when they moved away from mechanical linkages to strictly computer controlled, which was first done in the early 70's. There were already computers, although pretty crude by todays standards, in aircraft previous to this so "fly by computer" wouldn't really make sense. It was meant to specifically designate no mechanical linkage attached to the controls themselves, but obviously wires. Makes sense that they would carry the name over when it was brought to vehicles since the engineering community in general is pretty connected - new technologies spread to a lot of different industries etc. And of course marketing is gonna jump all over it because it's catchy.
I think when most people hear the word "wire", they initially associate it with electrical wire, and not, say, piano wire.