I completely disagree with this definition.
And I do think it is really important and it does matter what the difference is because searching for “Product Design” for jobs or articles or papers now is an absolute nightmare due to app/web developers jacking the name.
In the UK one University has a BSc Product Design and a BA Industrial Design and Technology. In the opinion of basically everyone but them they have these the wrong way round! Industrial Design is more science and engineering than degrees like Product Design which are more related to human factors (emotion, psychology, desires, aesthetics, etc, etc).
I think it would be easier to drop the Product Design usage for us due to its hijacking, as sad as that is.