Gelato = ice cream in Italian
In Italian, "gelato" does just mean ice cream, and as I recall, it's definitely possible to buy some not very good ice cream there. We used to get a deal on big buckets of a certain brand of ice cream from a family friend who was a sales rep... definitely quantity over quality. But I'll hand it to you that your average italian gelateria will have some pretty delectable flavors.
In English, it has become SOP to use a generic foreign word to denote (and add cachet to) a specific, usually overpriced, foreign-style item. ("Biscotti" just means cookies, "latte" means milk--it's slightly ridiculous.) When I used to order a "double espresso" at Starbucks, they always corrected me--it's "Doppio" (Dopey-oh) to them. If they must use a Disney character to represent their double espresso, they should have the couth to choose a less insulting one.
Make mine a Grumpy-oh.
Giovanni