Just a naming game ... no real progress, yet.
Clever companies will always find ways, to fool not so clever people. I also think, that most people know, that F2P is not really free.
this could also highlight apps that are truley free
Although I'm cynical enough to not expect this, things could be partitioned into "grant access to people with no payment on file" and "need payment on file to download this app".
The point is not to label them as free, so the customers can rely on the usual meaning of the word free. And when the app is about to charge money, the customer should be clearly informed it is about to do so, even if he did not turned on "require password before purchase" option.
The problem is the deception, not the ability to buy things from inside the app.