> Is it because lot of people are just using a VPN as a proxy replacement, watering down the original meaning of the word?

Yes. The question was about a “mainstream consumer”. While “mainstream” is always a moving target, today (in March 2025) that mainstream consumer believes that a VPN == NordVPN == ExpressVPN == what we call/know as a proxy.

NordVPN added some mesh features and you can CTRL-F this thread to find a confused person asking “how is tailscale different than Nord?”