Dunlop 65 is no worse than any other mineral oil:
MATERIAL SAFETY DATA SHEET
Section 1 Product Name
Common Name: 6554 – Formula No. 65 Ultimate Lemon Oil
Intended Use: To remove grime and return luster to guitar fret boards.
Section 2 - Composition and Information on Ingredients
MATERIALS WT% TLV PEL CAS#
White Mineral Oils >90% 5 mg/m3 5 mg/m3® 8042-47-5
Basically it's light mineral oil with a bit of scent.
As snake oil is basically light mineral oil with a scent added, yes you probably can say D65 is snake oil.
But note the intended use - no nourishing, hydration or protection. Its intended use is to clean (it does help remove greasy deposits/dead skin) and return luster (which is kind of like lustre, I imagine).
I use sewing machine oil or D65 (because I like the smell and the bottle dispenses much smaller amounts than my sewing machine oil bottle). But I don't saturate, I just do it because it looks and feels nicer than dry wood.