the "gourmet ghetto" in North Berkeley, for example.

I also spent 4 years calling <5 floor dorm buildings "BuildingName Tower". It even caught on with other people, but that didn't change the definition of a tower.

It seems like you're referring to the slang usage of the term

I certainly think so too, seeing as how it is nothing but a slang term.

which is mainly used by upper middle class youth

How rich, the guy who uses North Berkeley as a counter example is calling people out for a limited world view.