If they weren't smart enough, how would any 105's get sold at all?
Look, North America is about the only market where Land Cruiser is thought of as a Luxury SUV and compared evenly--by most of the population--with Navigators, Escalades, and Tahoes. Almost every other market, especially Oz and South Africa, they are known as one of the best point A to point B vehicles made, no matter the terrain. In these countries, you can buy essentially the same 100 series you can buy here, but you can also buy the 105.
So, it would stand to reason, if the public is trusted to know and understand the difference between the 100 and the 105, they can also handle the 120 being called a Land Cruiser, but just the least off-road capable of their three choices.
Just like Subaru trusts people to know the difference between the Impreza, the WRX, and the WRX Sti.