It seems to me that you are misinterpreting the idea based on terminology. It sounds like you don't like the idea of the word 'passive' in any way, shape or form, but I think that's missing the point. If you look at your constructed comparison between the 'Gray Man' and the 'Hard Target', there is no actually difference in the first three ideas.
I don't like the word passive, I like the words proactive. Proactive may not need to pre emptively defending yourself (AKA attacking unprovoked) but it does mean take action before the need to find yourself in an SD situation.
1. How can you be 'passively' aware? You're either aware or you're not, there is no 'passive' vs. 'active' awareness.
OK based on what? Sure there is a differense between being passively aware and actively aware. Passively aware is when you are looking for a threat without looking like your looking for a threat. Active awareness is letting people around you know your taking notice.
2. How can you 'passively' avoid potential threats? You either avoid them or you don't, there is no 'passive' vs. 'active' potential threat avoidance.
Again based on your opinion, passively avoid a threat is avoid a threat after it becomes apperent. Actively avoiding a threat is avoiding a threat with multiple signals of potental danger appear.
3. How do you passive blend in, in relation to a potential threat? You're either doing it intentionally, or again you're unaware. There is no 'passive' vs. 'active' blending in.
Wrong again, that where there is a huge difference. Passively blending is in as us said being unaware but trying to blend into your environment. A good example is a conversation I had with a friend of mine about racial profiling, he presented me with a strawman arguement that if I was in a bad neighborhood and several "black youths" entered the 7-11 I was in flashing gang signs and talking violently I wouldn't racially profile them as a threat compared to the clean cut white guy in a suit buy cigatettes.
My response was that the clean cut white guy was what seem a threat to me because he is out of place. Allot of people try to passively blend in trying to appear meek and not worthy of notice. Thats passively blending in, being the wall flower. Actively blending in is getting out on the dance floor, intermingling and interacting with those around. It presents the image that your not just part of an uncaring herd which will go unnoticed but that you are an active memory of the social cliche and that you will be noticed. You need not go over the top and create a spetical which shows that your not part of the herd anyway.
4. This is the one, possible, difference. You compare waiting to be threatened vs. pre-emptive action, but these are not mutually exclusive ideas. Depending on the context, either one may be appropriate. Are you going to attack someone because they look like a thug and they walked near you? Probably not, but you likely want to keep an eye on them. Should you wait until someone is in your face to take action when they were already acting aggressive and threatening (or just shady as hell)? Definitely not, but you don't want to punch somebody in the face for just a heated argument either.
Thats pretty much correct...
I think your interpretation of the concept is missing some elements and maybe needs to be reexamined, because your idea of the 'Hard Target' seems to meet everyone else's idea of the 'Gray Man'.
Thats depends on who you reference on the matter, those I been around lately don't see past suttle differences. You are 110% correct they are remarkably similar except for suttle differences. Most cases of where I've seen the Gray Man presented its presented as I've outlined. Passive more then Pro-active (guess thats a better word then simply active).
The GM fits his behavior to the situation. It can also mean projecting an air of 'not to be messed with' or 'dangerous if disturbed' when there is a good reason for it.
Camouflage in these situations does not mean meek or hidden. It means not drawing undue attention. Victims often stand out, while trying to blend in. One must know when and how to project oneself to avoid being singled out. That can mean being meek, or it can mean projecting strength. It depends upon the situation.
Thats kinda a subjective answer and its subjective because many people simply are not aware or taught when to apply that response for what situation. Most criminals are or have been victimized by stronger criminals and any attempt to blend in can be recongnized as weakness and therefore preyed upon.
I think you may be taking the term 'camouflage' a bit to literally.
Not at all, think about it. We dress a specific way to convey the message we desire to send. We dress well and groom ourselves well when going to work or especially so for job interviews. Criminals dress a specific way to impress upon you their affiliation, their attitude or they one they think you should believe and several other factors. Is all camouflage in one form or another. Trying to blend in with other potential victims marks you are a potential victim.
It can be, but it does not have to be. It means not being on the radar. That can mean blending in or it can mean standing out - but not in the way that marks one as a victim.
Thats true except, everyone is on the radar. Blending in with sheeps makes you as a sheep & blending in with wolves marks you wolf. You can't blend in with sheep as wolf and you can't blend in with the wolves as a sheep. A criminal is going to look out for competition (bigger stronger wolves) and easy meals (sheep) its just a matter of making a mistake thats lead you being a target. I prefer to be the "Old Goat" I'm not a threat the sheep and I'll not be easily taken by wolves.
The GM is a much larger concept than that. Imagine someone who buys the 'right' books with a credit card, and the books he actually reads by paying cash. Someone who never says the 'wrong' things online. Pays cash for his MA lessons and does not join MA forums. There are all kinds of predators, all kinds of threats, all kinds of defense. The goal of camouflage is not necessarily to be passive and hope danger doesn't come your way. A man in a Ghilly suit is camouflaged, and he definitely does not want to be seen. You could even say he's passive - until he's ready.
Actually I'd argue against someone in a ghillie being passive at blending in, first of all the meer act of actively pulling on a ghillie suit and using the proper individual movement techniques to get into place before wieghting is not exactly passive since he took active steps to blend in.