Mac OS: "Minimize" vs "Hide" - what's the difference?

Mac OS: "Minimize" vs "Hide" - what's the difference?

Why does OS X have both a "Hide" and a "Minimize" feature? This seems somewhat redundant to me, and also introduces some inconsistency when I am trying to find an arbitrary window. If it's hidden, I need to activate the application and use the "Windows" menu to bring it up; if the window is minimized, it appears in the dock.