Yes, they do get used interchangeably and it's very frustrating.

When Licenses originally came out- they were a way to allow people to run Validator Nodes, which would be a way to earn Tokens.

Now, if I understand correctly, License holders get Distributions- whether or not they run a Node. Which is, of course, NOT the way it was supposed to be and totally not fair to those who run Nodes.

IF I understand the economics of running Nodes correctly- they should be paid in relation to the amount of traffic they handle?
No Node= No Traffic= No Payment

Validator Nodes should, IMHO, be paid in this manner and there should be some mechanism built to provide for Node operators- whether through LPs, tolls, fees, SPL, DAO, or some other mechanism.
I totally agree with you: Validator Nodes need some ongoing funding mechanism- the 'pool' paying out to all License holders is inherently wrong and destructive. How can it be 'decent' when a central authority determines your earnings?