As far as I can tell, you were trying to use made-up words to say that Jason Fried was lying when he said he was inspired by his cleaning lady's business model because there was some particular difference between those two business models that you found significant but could not express except to vapidly define "services" as "that which cleaning ladies do" and "products" as "that which 37s is moving towards".
So I don't think they're made up at all, seeing as how they're in common use. It's probably true that there is not a black or white line between the two, and both can be good businesses, but I did think it fair to point out that cleaning is very much a "service" whereas 37 signals started out doing services (sites and so on) and moved towards products, which tend to scale up more.
As far as I can tell, you were trying to use made-up words to say that Jason Fried was lying when he said he was inspired by his cleaning lady's business model because there was some particular difference between those two business models that you found significant but could not express except to vapidly define "services" as "that which cleaning ladies do" and "products" as "that which 37s is moving towards".