Yeah, that was the media's name for it. I never heard people call it that until the magazines and tv used the term. That lumped in a bunch of stuff, from Queensryche to Soundgarden to Nirvana to Mudhoney.
As a 90s kid living on the other side of the Atlantic that was my name for it too. The proliferation of the "Seattle Scene" was very much a product of MTV and 90s culture. I guess it's more of a cultural category than a musical one, but then again you could say the same thing about punk!
EDIT it actually comes to mind that I've also heard Grunge referred to as "Post Punk"