There may be a hint of "morphing" action verb in the name morph. However, in the movie, the characters are not acquainted with the fast evolution abilities of the xenomorph. Hence their intent is clearly to use morph in the original sense of the Greek word: shape. This is proven by the fact that the context of the entire word is Greek. However, the characters' world and existence is fabricated by a being from Earth who needed a cool name and who is subtly breaking through the fourth wall to make the audience wonder if maybe there's more to the name. In a sort of etymological realm, the word itself has a mini-narrative that suggest "maybe my full Greek meaning has been invaded by an alternative meaning in one of my root words, and these stupid humans can't take a hint".
If the characters had had an Language PhD among them, he would have nipped it in the bud and say "excuse me, did you mean 'morph' as in shape, or 'morph' as in 'changing shape'? But alas the movie didn't have this.
Furthermore, if the characters had been privy to the morphing abilities of the xenomorph, they would have had a meeting to re-designate the class, and call it "xenomorpher", which clearly denotes action. Maybe they would have met to do this, but they were too busy running for their dear lives.
We shall take this quandary with us to the grave, like when Ripley was holding her chestburster and falling into lava. Why, James Cameron? Why?