I don't believe this is the correct use of the term, or at least, I don't feel it's being applied properly across the board. Using "the Internet", I dug around for a second or two and found what I think is a good definition of "Cinematic".
Now, this means something specific to me in terms of RPGs. I feel this suggests that "Cinematic" gaming means treating the tone, style, and overall flow of a game session, campaign, or adventure as you would the creation of a story as told through film.
Definition of CINEMATIC1: of, relating to, suggestive of, or suitable for motion pictures or the filming of motion pictures (cinematic principles and techniques)
Furthermore, I feel it means that the GM and players need to decide what sort of film genre, tone, and style to apply to their "movie", and act appropriately. Note that this doesn't mean an action/adventure RPG needs to automatically look like a John Woo movie; you could decide your game feels more like a Jason Bourne movie, or something Tarantino or Peckinpah might direct.
So in creating Commando, I decided that this game would be "Cinematic" in the same vein as all the classic war thrillers I'm using as inspirational material; Where Eagles Dare, The Guns of Navarone, The Dirty Dozen, as well as newer movies such as Black Book and Valkyrie. These movies don't have guys diving across a room with a blazing SMG in each hand while there's an explosion in the background; they are taunt, dramatic war movies with good action and a tight plot, and some of it might be a little bit over the top (because the nature of some of these missions is pretty incredible), but not so far as to make you annoyed in its unbelievability. For example, when Gregory Peck scales the cliff in The Guns of Navarone, it doesn't look like something out of Cliffhanger.
So I'm curious to see what other people think of the term "Cinematic", and whether they agree with my interpretation, or avoid the term altogether because of the stigma it has acquired.