Can this algorithm still be considered a Binary Search algorithm?
I would not call this a binary search.

It is clearly similar to binary search and it's natural to see it as a refinement of binary search.  However it has significantly different algorithm complexity characteristics, Interpolation Search has expected run time of O(log(log(n)) assuming the data is uniformly distributed, however it pays for this by having O(n) worst case run time.

I prefer to say "The worst case run time of binary search is O(log(n))" rather than "Depending on the choice of bounding elements the worst case run time of binary  search is O(log(n))".  This means that I can not classify Interpolation search as a binary search algorithm.