> Many people apply the term "enshittification" very loosely indeed, to mean "something that is bad,"

I haven't actually seen much of this. What I have seen (and done myself) is applying the term to a situation where the incentives are (mis)aligned to make it so things stochastically get ever-worse for an effectively-captive audience. The term resonates because it captures the process dynamics we all feel, not merely thing being in a poor state.

While this differs from the original definition which involved three parties (users, customers, investors), the bulk of that difference is that the original usage simply had two separate enshittification dynamics (users->customers and customers->investors).