Me too. I remember when I originally created my app passwords used with BRX, it seems like GMail used the term somewhat interchangeably with "less secure" device access. Also, the notice says "less secure" and also "or devices that have you sign in with only your username and password" so maybe two different things or maybe the second is the definition of the first, I can't tell. Either way, it sounds as if app specific passwords would fall into the second category, which is part of what's being banned.
Edit: finally, when you follow Google's instructions on creating a new app password, the link to do so doesn't appear for me on the specified page, so that maybe suggests that's part of what's going away.