DATD is simply wrong.
NPC spells out as non-player-character.
Woah! I didn't know that [sarcasm]!
Any character that the player can control by the command “GO” is a player’s character.
There's a difference between PLAYER character and PLAYABLE character. One represents the player in the game world, the other is a party member. You played Baldur's Gate, no? Well, there's ONE player character in baldur's gate, if you remember.