Did you know there was a difference? Or more importantly..... did you care?
It's true! Really. After much reading, it appears that it is generally accepted that Lace Knitting is defined as a knitted fabric where there is a row of plain knitting (usually the wrong side/purl row) worked alternately with a row of knitted holes/yarnovers and decreases made in various patterns.
Knitted Lace is knitted fabric where there are holes/yarnovers and corresponding decreases are made on every row. Giving more definition to a lace pattern utilizing stitches like p2tog, p2togb. p3tog, p3togb, sp2p, and s2pp2. I'll post more about these stitches later.
The easiest way to tell the difference that the strands separating the holes/yarnovers in lace kniiting are twisted. Where is knitted lace the strands appear more in a suspended manner and not twisted.
In this closeup photo of the Kalokairi Lace Wrap, both examples are exhibited in one piece. The wave or leaf looking pattern is knitted lace or worked in pattern on both the front or right side and the back or wrong side. Notice how the strands inbetween the holes/yarnovers are straight, without any twists.
While the rows of faggoting separating, the wave pattern, are twisted and form distinctively round holes or lace knitting.
For me, I get the difference, but find the terminology confusing at best, and easily mixed up.
My philosophy is ...... just keep knitting knitted lace and lace knitting! =-)