"Solving for product" is VC pidgin speak. Much contemporary software hardly solves anything anymore; it's getting shittier every iteration without fundamental progress in the field as everything turns into yet another dumbed down web-based abomination that robs us of more of our sanity (exceptions excepted!). There are good explanations for this, but I still don't like it.
Yes, and customers are less informed than ever. RMS's "useds" (instead of users) comes to mind often in recent years. To clarify, I don't think one should considers it solely the user's fault, because user pedagogy is a shared responsibility, that needs to be offered and taken.