Yes, but that's the thing, when people say "Iroh lives in the app" they mean the entire thing, the relays are optional hole-punching mechanisms, otherwise it is distributed P2P embedded in the app. It's slightly confusing when you claim OpenZiti to be the same, with "fully app embedded" but in reality there is a server/overlay/controller/coordinator running somewhere that isn't actually embedded in the app.
I'm not saying the idea is bad, I think both have their use cases, OpenZiti seems like a solid project otherwise, I'm not trying to say it's a bad choice. I'm merely trying to help you, as an outsider, to maybe use/don't use certain words/definitions when you talk about it as it gets confusing then once you actually start looking at the code and things look very different from the expectations you set.
I do wish you luck with the project, all sorts of P2P projects are needed and they all have their place, I don't think it's a "one eats them all" ecosystem, and the more the merrier :)