"The knowledge and vision to see things clearly" (yathābhūtañāṇadassanaṃ) Knowing intellectually the three characteristics is one thing, experiencing them is another. As far as I understood, vipassana happens without will, since it is morality that leads to rapture and sukkha, which then helps to stabilize the mind, in order to facilitate clear seeing. 

My question then is: 

1) Are most people both generically and wrongly coining in the term vipassana to point to a "new age" technique that has nothing to do with "clear seeing" according to Buddhism?

2) In how far needs meditation development? According to AN 10.1 it is moral purity that leads to consummate concentration necessary for seeing the three characteristics.


  [Ananda:] "What, O Venerable One, is the reward and blessing of wholesome morality?"
  
  [The Buddha:] "Freedom from remorse, Ananda."
  
  "And of freedom from remorse?"
  
  "Joy, Ananda"
  
  "And of joy?"
  
  "Rapture, Ananda"
  
  "And of rapture?"
  
  "Tranquillity, Ananda."
  
  "And of tranquillity?"
  
  "Happiness, Ananda."
  
  "And of happiness?"
  
  "Concentration, Ananda."
  
  "And of concentration?"
  
  "Vision and knowledge according to reality."
  
  "And of the vision and knowledge according to reality?"
  
  "Turning away and detachment, Ananda."
  
  "And of turning away and detachment?"
  
  "The vision and knowledge with regard to Deliverance, Ananda."
  
  — AN 10.1


With regards
1) Yes. When the Buddha spoke about vipassana, he meant it as being the direct insight into reality.

What is being taught as vipassana (depending on how it is taught) is supposed to be the training which will lead us to vipassana.

As far as the Buddha-Dhamma is concerned. Meditation training means: Abandoning, letting go, of craving and clinging. Which will lead us to vipassana "clear seeing".

The whole path of the Buddha-Dhamma can be summarized with this short sentence;

"Nothing whatsoever should be clung to".

Or as Ajahn Buddhadasa would express it: "Nothing whatsoever should be clung to as being I or mine".

The amount of training (sitting meditation) that must be done, will depend on the mental faculties, moral purity, weakening of mental defilements, equanimity, understanding, wisdom etc.

Abandoning or letting go of craving and clinging should be practiced day and night, until complete cessation of craving and clinging.