Its a mis-used term really. A web-designer technically does just that, 'designs'. Visuals, navigation, structure, that kinda thing. A web-developer is the person who writes the markup and other coding etc. Gets the design from theory into reality.
The problem is that 'web-developer' is analogous to php, javascript or flash development and not really (x)html & css which aren't really programming languages.
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Subtlety is my middle name... and first and last in case you didn't get the point.
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