Apps definitely have a place for some use cases, but for most they just have so many downsides, especially invasive privacy violations. I think of running an app as similar to running some unknown/close source binary as root on my machine. Why give an app access to a whole bunch of APIs that can be used to mine me for data when it isn't needed?
Cross platform usability is also a big thing. Any apps that require typing are much better done on a laptop or desktop with a keyboard. Why should I be forced to use my tiny phone screen and super awkward mobile keyboard to fill out a form when I have a perfectly good laptop right next to me? Why should I have to run a specific operating system (apple or android) in order to be able to fill out the form?
Few people I know still get excited about apps. The curiosity and fascination is largely over. Unless there's a compelling reason, people don't want to install "another app"