The term is often used among writers and publishers who wish to break out of what is commonly called the "sci-fi ghetto". There is an unfortunate tendency among both many publishers and a large segment of the reading public who tend to expect only science-fiction stories from a person who has once written science-fiction. Writers such as Harlan Ellison have deliberate rejected identification as a science-fiction writer for precisely such reasons; they don't reject the SF genre (which Ellison, for example, still participates in) but they do reject the ghettoization of their work.
This term is coming into more frequent usage among younger fans who wish to break down the literary barriers between the horror, fantasy, and sci-fi genres.