The game is definitly P2W. However the term gets thrown around rather loosely. World Of Warcraft is also p2w, you buy ingame gold, you can then buy items from Auction. Diablo 3 was the same.
In almost any game, minus a straight up comp shooter such as call of duty,battlefield, etc. most games now are p2w.
However take note, that the idea of games becoming more and more p2w is because before this all games cost money, would i rather we just pay a flat fee of 50$ plus 10 a month? yes, however people want to play for free, and this type of game exists and flourishes now. It is what it is.
The important question is can the game be fun if you only put in 10-20$ or is it complete crap? that..depends on the person, a true p2w (ONLY) game is one that wouldn't even give you free ninjas after naruto/sakura/sasuke. thats when the term got used primarily. So there you go ^_^