While technically competent people might go:
"Oh neat, I don't even need to install an app, if I just put the website icon onto my home screen."
Most users are like: "Oh my god noooo! Not another way to do something! Aaaaa I cannot cope!" and panic.
I am not claiming it is. But it is different from what some people got introduced to. That's enough already to strike fear.
But what do you mean with websites have been neutered? Didn't HTML, CSS, and JS only got more capabilities over time?
They did, but almost all of them are just there so serve developers, to enable them to build even more sophisticated interactive billboards. The web serves marketing and advertising. So do apps, but the web does it better in many ways.
What I meant by websites being neutered, is along the dimension of empowering users. Webapps as tools that provide functionality and play well with others. Composability, interoperability, end-user authonomy. Those are anathema to modern web.
And as I said, apps ain't better. It's really "pick your poison", whether you want to be fighting with your browser sandbox, or with your OS sandbox - and half of the things you need sit on the server-side anyway, out of your reach.
Their mental model of how they LIKE to use them is different from yours though - and that should be ok instead of arousing angst.
I just find apps more practical and convenient than websites in a browser most of the time, on my phone.
I saw a tweet where some Zoomer was roasting an "Elder Millenial" for switching devices from a mobile phone to a desktop when making a big purchase (airline tickets? I forget).
I didn't feel like wading into that argument (what's the point? like spitting in a campfire), but... yeah.
Some folks say that we are regressing wrt technological proficiency, but it's really just that more people use technology than they used to. Regression to the mean, maybe? Is that the right expression?
But aside from that, even if I had claimed that, it wouldn't imply, that anyone preferring an app must be computer illiterate.