It’s probably true that the distinction isn’t really important any more. The things we used to have to worry about in the (g)olden days of Unix (/s) are ridiculous by todays standards. We had one of the first 2.5GB RAID arrays in the country and could run a whole medical laboratory - maybe 100 people running Wyse 60 terminals - on it. We had a dedicated 500MB drive for the OS and a couple of other drives just for database logfiles.
These days the whole OS now fits on a single SSD which takes up a tiny fraction of the device. Large SSDs have made so much complexity obsolete for most people. I believe that one could, quite literally, run that old lab software from a single Raspberry Pi.
The point being, stuff that made sense in that old environment does not necessarily make sense any more. It’s good to have the discussion though.