- RC Flying (hobby): Line of sight, RC controlled radio aircraft (non-turbine) that stay below 400'
- RC Drones (hobby): Line of sight, RC controlled but capable of unmanned flight either via pre-programmed instructions or GPS (note: regardless of capabilities, these aircraft must sill stay below 400' and be non-commercial)
- Commercial Drones / RC-for-hire: These are aircraft that are flown for commercial reasons (aerial photography, crop monitoring, surveillance)--meaning someone is giving you $$ to operate the aircraft. They could just be normal, off-the-shelf RC airplanes -- but it's use is what is restricted.
The reason that the FAA is concerned with commercial use is that in order for that to work, drones need to be safely integrated into US airspace. How would you feel if you were taking a flight from SFO to ORD and some jackass with a "drone" gets his multi-copter sucked into your engine? Also, there are insurance issues with this as well. I have insurance through the AMA (Academy of Model Aeronautics) which covers me if I fly my 5 pound airplane into a house or mess something up (so long as I'm flying in designated areas for non-commercial purposes).
What happens when someone who's doing aerial photography for a wedding and his heli falls out of the sky (they do that sometimes) hurting a guest? Who pays for that? Insurance companies need a way to asses the risk of these thing flying around commercially.
Lots to think about--privacy, safety, big brother...
In the RC world, drones are aircraft that can operate for periods of time without real time human input.
In the "real" world, it's about whether the aircraft operates with pilot on board (traditional aircraft), within direct view of an operator (rc), or neither (drone)