"Web Application Development" is only a subset of "Application Development" which is again only a subset of "Coding/Programming".
There are many kinds of application development - web application development, desktop application development, mobile application development, embedded application development, games development etc. So, web application is just the most popular kind of application development.
Also not all coding is done to develop applications. There is difference between a program and an application. Sometimes people code to write utility programs, e.g. shell scripts which isn't application.
I believe undergraduate courses should be designed to provide solid fundamental knowledge of computer science and how various fields of computer science relate to each other while postgraduate programs should provide specialized education.