That said, I ship my own software with all required dll's in one directory, too.
Really, too fucking late eh?
That's an interesting point I hadn't considered.
I had always operated under the assumption that DLLs were a design compromise to allow code reuse on systems with relatively constrained storage.
All that being said, I still run into problems with missing or version mismatched DLLs quite frequently. It seems particularly bad with software provided by the O/S community, but there's a fair number of commercial programs where I run into these issues as well. The obvious solution to me is to just ship with all required DLLs (when possible) and install them in the local path for your app. Nobody is really going to notice another few MB missing these days.
On Linux at least people some how agreed that system version is for the better, and works there.
Then again I wouldn't have a problem with someone defining the terms differently so that they are the same or overlap in a different way. I wouldn't say though that they are very different - they are related no matter how you slice it.