Nah, I believe it's more than words. Here's an example.
A woman wants to start weights. She doesn't want to get big like a bodybuilder; she wants to get "toned", ie, lower bodyfat and increase muscle (as you quite rightly say).
She does 2 sets of 20 reps on every exercise in the gym with a ridiculously low weight because there seems to be some sort of myth that low weight and high reps "tones" the muscles.
Instead, what she should do, is lift heavier (for example, 3 sets of 10 with a heavier weight), do some sort of vigouress cardiovascuar activity, and eat a few hundred calories less than she burned.
I see your point of view, and there is a lot of truth in it though. However, this myth of certain exercises to "tone" the body is IMO rubbish.