8 hours is typically time from bedtime to wake time. It allows for some time spent falling asleep, and maybe one wake-up to visit the bathroom.
You'll notice that your suggested wake times are an hour and a half apart. Natural sleep cycles tend to run about 90 minutes (on average). So 7.5 hours would be 5 cycles. 8 hours is 5 cycles plus that buffer time.
I haven't used the app you mention, but I have begun a habit of getting out of bed between cycles instead of whenever in the cycle my alarm goes off. It definitely increases morning alertness and willingness to get up. Not sure it affects restedness much.
And I've been measuring my sleep in cycles (or at least in 90 min increments) instead of in hours - which gives me a much clearer perspective on how much I've had and need.