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The best answer I got comes from a response to an issue on the Vuejs templates project by bjunc. Here is the explanation :
As noted by Evan in this issue reply, the meaning of h comes from hyperscript:
It comes from the term “hyperscript”, which is commonly used in many virtual-dom implementations. “Hyperscript” itself stands for “script that generates HTML structures” because HTML is the acronym for “hyper-text markup language”.
Source:stackexchange.com