In my book, polishing includes the steps of removing paint imperfections. Polish can be either chemical or abrasive, and can sometimes be both wrapped in one package. Polishing usually doesn't include any type of paint protection, although that's not always the case. That's just my take on it.
I agree that many people have different meanings for the same terms in the detailing world. Examples would be things like polishing, waxing, swirls (marring), swirls (holograms), etc. It can be confusing sometimes.