Often, within the technology sector it is the technologists that form the etymology of terms and phrases. We who make our living from technology need to understand that it is not just about the device or shinny new gadget or new programming language but really about what it can do for the individual, group, and society.
The term "Social Media" is no different. For example, we are enamored with the emerging use of location based services and tools. And yes, it is cool. But, what does this mean for you, your friends, family, and culture at large? How will it help? Indeed, will it help you and/or your business? We talk about and discuss Twitter's search value and Facebook's Graph API and this is great. Yet, what can it do to better help developers enable users with better and more convenient tools?
Rob Key just wrote a great article on that very question entitled, Why we need to kill "social media." Please read it.