I hear from your explanation that you are associating vectors with the euclidian vector space R3, which is a kind of limited view, I think.
Vector is a rather abstract term in mathematics, different kinds o vectors have different properties. It seems to me that the said dot product has a meaning for AC quantities, it can e.g. represent real power. Direction has a different meaning in two-dimensional space than in R3, but many phenomena in AC networks and electrical machines can be well understood as a 2D direction.
But again, I'm not speaking against your description of phasors, only against the - as I think arbitrary - claim that they are no vectors. In any case, this a matter of terms definition where most questions can't be answered with wrong or right rather than useful or meaningless.