I think it's pop music, but then my tastes are pretty obscure.
I think you're both right. Somewhere between Homework and Discovery is where I'd say that Daft Punk turned from French house into pop. Basically the release of Homework in 1997 on Virgin was the beginning of the end. I remember it being somewhat strange that Da Funk was getting radio play in anticipation of the album, but that track still isn't pop music, and neither is the B-side Musique.
Bangalter had the Roule label as a side project and Guy-Manuel had Crydamoure. The release of Stardust (i.e. Music Sounds Better With You) on Roule by Bangalter (and Alan Braxe) in June 1998 turned into a massive crossover hit. This was probably what pushed them into pop territory more than anything else. The only release by Bangalter on Roule to follow was Trax On Da Rocks Vol. 2, and it's definitely house music. Guy-Manuel was releasing stuff as The Knight Club on Crydamoure until 2002, but for many people the house party stopped when Bangalter stopped.
Or do you really believe that Homework was a pop music album? This is Rollin' & Scratchin', for example: