The screen is too small to use a web browser, but not too small to use an app? Can you explain what you mean? This doesn't seem at all reasonable.
Just the simple trick of zooming in on a website with a "2 finger pinch/pull" is something a big part of the population doesn't even know how to do. I know my mom would probably just give up.
Buttons on many websites are way too small for some people to use.
Those are never an issue on native apps. The UI on apps scale with the size of a phone's screen. No matter if you have the smallest iPhone or the largest Android.
This alone is enough for many people to not use the web browser unless absolutely necessary.