I am picking this up from here

Something here got me to thinking,

The distinction between COIN and CT, however, is poorly understood. For one, there is no hard and fast dichotomy between the two – a fact that Kaplan and other longtime defense correspondents largely understand but which policy-makers must understand as well. If what Kaplan writes is true, and policy-makers are stuck thinking of their policy options as either/or propositions, we are in more trouble in Afghanistan than I thought.
In the UK there is pretty much clear blue water between Counter-Terrorism and Counter-Insurgency, when it comes down to the detailed discussion, and even general understanding. It's never occurred to me that there should be a confusion between the two.

Do the lines between the two blur? Sure, but when anything blurs, you re-focus. Very little in Warfare is a hard and fast separation, so I am extremely curious as to how this even becomes a problem, because once considered within a context, most of the problem goes away EG: Suicide bomber on NY train = Terrorist. Suicide bomber in Baghdad Market = Insurgent. Given context, I can't see the problem, even at the higher strategic level. 9/11 = Terrorism (no military means or intent). Something in A'Stan = Insurgency - (use of military means with military intent).

What am I missing?