Its one of those stop-gap efforts they seem to want to do to avoid acknowledging the real problem: Hollywood doesn't want the Oscars to just be an industry award, where insiders pat the backs of other insiders for doing stuff that insiders think is cool. They want the Oscars to be a part of the cultural conversation, as a measure of the wider artistic success and importance of movies. . . and they especially want *the viewing public* to view them as such, so that they watch the Oscars on TV and produce ratings and ad revenue. Which is increasingly not the case, because put bluntly a huge amount of Oscar-nominated films, and films pursuing said nominations, *have no wider artistic and cultural importance*. They are not made with any effort to be part of the larger popular culture, merely to appeal to a small cadre of artistic insiders.
In order to change this trend of the public not caring about the Oscars, the Academy can't just throw out some vague "Popular Movie Award" or whatnot. They need to care about making movies that actually matter to people outside the Academy, as a general fact.