I've only heard of LOLBins in the context of ≈malware / exploits / pen-testing, where they are used trying to circumvent anomaly / intrusion detection systems by doing what you need with already existing or approved binaries.

So in the same way as the initial exploit probably could be called "reusing something beyond its intended purpose" LOLBins can help you continue, to get a persistent reverse shell or exfiltrate some data.

(But I guess they theoretically could be used in some Apollo 13-esque scene, trying to get the backup's off some really broken system or something)