The percentage of interest-only-with-no-down-payment.loans you cite for Georgia is at least matched by California. "A hi tech form of renting." Good description.
I have no real problem with it however. As I recall Japan has multi-generation home loans and a 75-year mortgage may be coming here soon.
What I do have a problem with is the inane comparison of past generations to this one vis-a-vis home ownership.
You expressed it well by asking,
"Can you really classify these people as homewoners in the classical sense?"
Yes, at one time "burning the mortgage papers" at retirement age was once considered ideal. That's home ownership.