So, conceptually is it important to distinguish between framework and library?
Yes, it is. A framework and a library are fundamentally different. The defining characteristic of a framework is inversion of control: when you use a library, you call the library; when you use a framework, the framework calls you.
So, they are not just "different", they are in fact exact opposites in some sense.
Do people seriously make their decisions based on whether it is a library or framework?
Yes, of course. Building a solution with a library vs. a framework yields completely different (again, in some sense opposite) design. With a framework, the entire structure of your code will be "inside-out" compared to with a library.
Would a user like to browse two separate areas - libraries and frameworks while looking for a solution?
Highly likely. I know I would.