Fabric ≠ Food
I don’t know about you, but I don’t go around eating cotton. Cotton is grown for fabric, not food. Cottonseed has been used to make feed for livestock, but even that requires a fair amount of processing, and those of us living a Paleo lifestyle generally prefer to avoid the highly-processed foods.
Paleo and Processed Foodish Substances
As far as I know, cottonseed is only consumed by humans as cottonseed oil, which is extracted from the seed using harsh solvents, then hydrogenated to make it shelf stable. Again, not something I consider to be food.
Mark Sisson also discusses the inedibility of cottonseed.