Indeed it is, with people thinking that programs that save their state, and stop are actually multitasking.
Crazy isn't it?
Audio apps I guess if the exception.
Note: I'm not saying I want proper multitasking at all, I'm just saying we should not let Apple pull the wool over people's eyes and attempt to redefine what multitasking means.
If you employed staff in a shop and as soon as you looked at one of them the others all froze in their tracks, you would not call them multitasking.
I don't care it does not do it. Just call it something else.
Audio Apps are not the only exception, there are a bunch of them. Background Apps can, for example, receive Skype calls, finish uploading or downloading files, give you Sat-Nav directions, log a GPS track and give you todo items based on where you are. The "exceptions" cover most of the common tasks that users would want to multitask on a mobile device. The big exceptions are tasks that involve receiving network alerts that don't fit into the Push Notifications model and downloading data based on a network alert (i.e. Getting new Kindle, RSS Reader, Instapaper content)
As to whether Apple should be calling this multitasking, I think that limiting the definition of multitasking to only manual, desktop style multitasking is rather short sighted. If the user can get the same end result (listen to internet radio while surfing, not have to wait for a file to finish uploading) why not call it the same thing? Plus for many users I would say that Apple's automatic approach to multitasking is simply better. There is no need to worry about quitting Apps to avoid running out of memory or battery life. I bet many iPhone users are getting the benefit of multitasking without realising they are doing anything.