WASM is basically a misnomer at this point. People are using it as a universal virtual machine/runtime. Whether that makes any sense is still an open question.
An example of this is Microsoft Flight Simulator. Packages such as aircraft are distributed/compiled as WASM modules and run (as I understand it) in a sandboxed environment within the simulator.
Web standards/technologies are in wide use outside of browsers (via things like Electron), so you may find that the name makes more sense when viewed through that lens.
In your view, why does it not make sense? It certainly seems appealing as a universal runtime, and lives up to its claims as long as things like WASI get standardized.