On a new Raspbian installation, the CEC name sent to the display is "raspberry" regardless of what the hostname is set to.
How do I change the CEC name "raspberry" to something else?
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I started the thread Steve Robbillard kindly pointed out. At the time, my Raspberry Pi displayed as "CECTester". I went to the CEC-O-MATIC website to find the command for changing the label that displays in the input menu of the TV.
There you can select your source (mine is Recording 1) and the destination (the TV). Then go to the "Supporting Features" tab and select the "Device OSD Name Transfer" item. "Set OSD Name" is what you want. For example, to change my Raspberry Pi from CECTester to RPi, I used the following command:
echo "tx 10 47 52 50 69" | cec-client -s -d 1
The first byte contains the source (upper nibble) and destination (lower nibble) addresses. The next byte is the command. The following bytes contain the string.
As a warning, I did this with cec-client and libcec about a year and a half ago. I doubt things will have changed, but I remember each device behaved a little differently with regards to CEC support.