fine art; noun
1. creative art, especially visual art, whose products are to be appreciated primarily or solely for their imaginative, aesthetic, or intellectual content.
So, prints on canvas are indeed "fine art".
On several occasions I have overheard art show attendees asking among themselves whether photographs printed on canvas were photographs or paintings. More than once people concluded that they were paintings only to be amazed when the photographer corrected them. So, at least in cases where canvas texture is similar to that commonly used for paintings, there is indeed some confusion among the general public as to what they are viewing. That could be negated with a simple sign, but that doesn't change the fact that some canvas types give the impression of a painting.
Whether one likes photos printed on canvas prints is purely a matter of personal taste. There is no question that canvas prints outsell conventional prints on paper. I personally prefer photographic prints on a very smooth paper surface and do not use canvas even though I know sales would increase if I did. I think the bottom line is that everyone should do what they are comfortable doing, and whatever that turns out to be is not "wrong".