I'm glad that Mav is on the same page as me.

Here's one other way to differentiate terror and horror:

Terror is the feeling that you have just before a public speaking engagement for which you are not well-prepared, and you know that Jackie is in the audience. Horror is what you feel when you walk off the stage, having just bombed the whole speech, and you realize that your fly is unzipped.

In reply to:

We don't have Terror flicks, nor do we have horrorists. But I'm not arguing logically.

Well, I think Kenny G might be described as a horrorist, since his music makes me want to run screaming from the room. Same goes for Jerry Bruckheimer films, the Backstreet Boys, and MTV.