ekeup:
In summary -- we don't really use the term 'pill' here much. This seems to be (mostly) a term coined by AwesomeLasers, with their Cobalt series. (It was also common for CB freebanders to use the term 'pill' for a TO-3 canned transistor, which performed a similar function in amplifiers, and i'm guessing this is where Ian and Dave at AwesomeLasers got their terminology.) Additionally I know that some folks on CPF refer to the LED driver or driver+heatsink in an LED light as the "pill", but most people just call them drivers, and that's probably the best thing to refer to them as around here.
In any case, by "pill", when it's at all importat - they probably mean "driver" - which is going to be the term we use for it. It can also mean the driver+heatsink, as you said, or the driver+whatever it sits on. I've never really heard it used for the diode+heatsink combination but I suppose someone could. But I think it's less common.
But most importantly, when referring to a driver -- It's a small circuit board which regulates current to the laser diode. Laser diodes are current-dependent, and must be current-limited to prevent runaway conditions where they essentially burn themselves up. (Similar to LEDs, but moreso.) -- additionally, certain laser diodes will require a specfic Vf (forward voltage), and a 'buck/boost' driver can either lower (buck) or raise (boost) that voltage in relation to the source battery, which is usually 3.7v lithium ion. In that case, it's all ohm's law, where current is sacrificed for voltage, or voltage is sacrificed for current, so long as it all balances out.
I agree that the search function is useful, but also I do understand sometimes folks need a bit of a 'jumpstart'... Took me forever to even figure out what LOC, SOC, SCC, PHR, etc meant. It'll come with time, just read a lot, you'll get it. But, I think why people 'facepalmed' is just that it's not a very commonly used term around these parts.
532: There actually was a 'sticky' of commonly used terms here, I'll try to find it for him..
EDIT: here they are.
http://laserpointerforums.com/f44/acronyms-forum-42167.html
http://laserpointerforums.com/f44/good-know-laser-term-guide-newbies-58951.html
Give a look at those, those should go a long way, actually, in familiarizing you.