You’re right that they either never learned what 1st-2nd-3rd world really means, or they forgot what they were taught in history class. Unfortunately it still is the main term to refer to poor countries even though it’s incorrect. Language seems to be biased towards the common meaning over the technically correct meaning.

No one really uses that word in its Cold War context anymore. It’s the common term for “developing countries” and the like.

Airlines were one of the first to enshittify this way in the modern age. I think a lot of the current executives took this story to heart IMO.