Why do the general public confuse web apps and web sites? Web sites are developed to market specific entities and establish a brand. A web application has complex business logic, that allows users to interact with the application. I guess everyone’s still in the web 1.0 phase, where anything on the web is static–no sharing, no interaction, no real-time data.
Or the worst one is when people call a web site a web application. 
C’mon, what kind of complex logic is a PHP script calling a database for a few paragraphs? JEEZ.
Examples of web sites:
- Starcraft 2
- Apple, Inc.
- Microsoft Corporation
Examples of web applications:
- iGoogle
- My Yahoo!
- Digg
- Wikipedia
There is a clear line between web sites and web apps.
