Difference Between People and Traffic

nothing. theres no difference people are traffic but theres a difference between just traffic and targeted traffic. Targeted is traffic that may have interest in what you have to offer.

I see it this way - traffic is the number of hits but people just might stop and look at what's going on on your site.

You can generate traffic without a person being present, a single person can use 2 or more computers, or proxies so you're not really getting "good traffic". A single person can visit your site more than once a day, using a different IP, again not "good traffic". Essentially you would prefer more people to visit your site

What do you mean? Chris