I think of 'chick lit' as all the rubbish I read with sparkly covers, ideal for the bus and the bonfire. I read one recently which referenced my area and was howling with laughter at the appalling research. I still read it though, and I quite enjoyed it.
I think 'chic lit' has changed though. Jilly Cooper, Jackie Collins, Shirley Conran were great. Jill Mansell and Marian Keyes have had their moments, but I think the proliferation of dreadful Irish authors (no tax to pay so publish anything) have done real damage to the genre of romantic fiction directed at women.
I wouldn't change the term to 'crap lit', even if I think it's more descriptive, because I think reading anything is better than not reading at all, especially if you are young.
What's wrong with 'love stories', that's what most chic lit books end up being.
The term always sounded a bit derogatory to me - not just in terms of the audience but for the authors too, but I guess others may say it's empowering. Wikipedia says other terms were coined but didn't stick.
side note: While trying to think of a better term, the word "womance" popped in to my head and refuses to leave. Now all I can hear is Jonathan Ross saying it.
I think it depends on what sort of books you are talking about and in what context. Sometimes I worry that the term "chick lit" is used to dismiss books that take relationships and women's lives as their major themes.