Sure, "Holographic Weapon Sight" is similar sounding to "Holographic Diffraction Sight". But with HOLO and SIGHT still in the name, it is also too similar sounding to "Bushnell HOLOsight". I feel they actually AREN'T distancing the high-end models from the low-end ones with the new name; If anything, it could have the opposite effect. HOLO is so recognized, that if you asked someone to guess who makes the new "HOLO Light" or "HOLO Laser" the first thing they'd say is, "Bushnell?" Its a whole lot easier to just call the pro stuff "EOTech" and the cheap stuff "Bushnell". I've had both, and respect when someone says, "EOTech".
We also felt the 2 trade names were very similar so it would cause much less confusion.