On the contrary, it is a helpful term. Before the term, it was common to ask "are you a manager", and then you were defined oppositionally, as not-a-manager.

Whereas IC having its own identity means it has many positive connotations. "I'd much rather be an IC, so I can get things done" etc. You can still be very senior without having direct reports or having to do line management, often seen as a necessary evil.