I think this section sums it up well why there became a demand for apps, and the points are still valid today.
"But back then, the limitations of web apps, their lack of access to core functionality, their relatively poor performance compared to native apps, and the difficulties involved in charging for them proved to be insurmountable problems.
As a solution, web apps were more sour than sweet."
https://www.imore.com/history-app-store-year-zero
I think this section sums it up well why there became a demand for apps, and the points are still valid today.
"But back then, the limitations of web apps, their lack of access to core functionality, their relatively poor performance compared to native apps, and the difficulties involved in charging for them proved to be insurmountable problems.
As a solution, web apps were more sour than sweet."