Just having high physical IPC means squat. That is why nobody uses your definition for a performance context. No one is misusing the term, they are simply not using your irrelevant definition.
Your definition would mean processors have hardly progressed over the last 30 years.
For example, the original Core architecture did 4 instructions per clock. Yet I would like to see you say with a straight face that somehow is relevant when comparing performance of an original Core chip and current Kaby Lake.
http://www.anandtech.com/show/1998/4
Looking into it, my comments on software optimisation was not relevant in this context. However IPC is instructions per clock. Just because IPC hasn't changed doesn't mean you can misuse the word. Also misuse of the word leads to lack of understanding/mistakes. The number of instructions per clock isn't the only thing that determines processor's performance. You have things like latency between command executions, cache hit rates, speed of data transmission, CPU speed etc.
It why there are reviewers who use the term "Single threaded performance" instead of IPC. A more appropriate term (but still not great) would be instructions per second.