For an example of its usage in its etymologic meaning...
For an example of its usage in its etymologic meaning, it suffices to note the following verse: وَمَنْ أَحْسَنُ دِينًا مِمَّنْ أَسْلَمَ وَجْهَهُ لِلَّهِ وَهُوَ مُحْسِنٌ وَاتَّبَعَ مِلَّةَ إِبْرَاهِيمَ حَنِيفًا ۗ وَاتَّخَذَ اللَّهُ إِبْرَاهِيمَ خَلِيلًا “And who has a better religion than him who submits [ aslama : past participle, from islam **]** his will to God, being virtuous, and follows the creed of Abraham…” [^4] This verse indicates that the creed of Abraham was a manifestation of islam in the sense of submission to God.
One finds islam used in this sense also in the words of Jacob’s children: قَالُوا نَعْبُدُ إِلَٰهَكَ وَإِلَٰهَ آبَائِكَ إِبْرَاهِيمَ وَإِسْمَاعِيلَ وَإِسْحَاقَ إِلَٰهًا وَاحِدًا وَنَحْنُ لَهُ مُسْلِمُونَ “They said, ‘We will worship your God, and the God of your fathers, Abraham, Ishmael, and Isaac, the One God, and to Him do we submit’.” [^5] You further contend that if islam denoted the etymologic meaning of the word and not the conventional meaning, we would not be justified in citing verse (3:85) as proof that Islam is the ultimate religion.
This contention however is based on two presuppositions: one, that there is no reason other than the verse in question for Islam being the final religion and, two, that in this verse, islam denotes the conventional meaning, not the etymologic meaning. Both of these presuppositions, however, are false. You further write, “ Hadith s confirm the conventional meaning of the term.” No one denies that there is such a meaning.
The point is: the conventional meaning does not discard the etymologic meaning. Thus, the hadith s in some cases refer to and describe the conventional meaning and in some cases point to the etymologic meaning (i.e., submission, obedience), explicating its various degrees. As to your point that people all around the world know islam as the religion brought by Muhammad, there is no question about that.
In fact, it was Abraham who first introduced this name: مِلَّةَ أَبِيكُمْ إِبْرَاهِيمَ ۚ هُوَ سَمَّاكُمُ الْمُسْلِمِينَ مِنْ قَبْلُ “…the faith of your father, Abraham. He named you Muslims before…” [^6] Thus, the Qur’an refers to prophets after Abraham and their followers (e.g., Ishmael, Isaac, Jacob, Solomon, Queen of Sheba, Joseph, Jacob’s sons, Pharaoh’s magicians, and Jesus’ disciples) as those who embraced Islam.