It's crazy how we have changed the definition of an 'App' nowadays. I always
thought App means Software (but sounds cooler since Apple has popularized it).
Yes, every word becomes much cooler when everybody and his dog use it in any correct or incorrect context. The peak of coolness is reached as soon as the marketing drones smear the word all over the place. In this case it's not even a word. It's just a something like a grunt.
The marketing drones were quite successful in making 'app' the short form for 'primitive little program that runs on a toy device and usually serves no purpose' *. It's like calling someone's horse a donkey.
Edit: * Which is also the reason why buyers are willing to pay a buck or less for it.