IPTV is generally considered to be a technology to enable the distribution of broadcast TV via a newer, and more granular, form of distribution technology vs. legacy cable distribution systems. IP as previously discussed can specify source and destination addresses, and the packetized nature of the technology is transparent to the medium it traverses to get from source to destination.
The diagram above gives a great depiction of the "IP core" as the new intermediary network allowing the smart delivery of regular TV broadcast content to the household. The important concept here, is that IPTV is also considered the domain of large telcos, who are making an aggressive push to displace the traditional domain of cable broadcasters. The Verizons, and AT&T's of the World no longer want to play second fiddle to the Comcast and Cox's of the World, with their legacy and non-IP based cable distribution technologies.
Internet Television on the other hand, can be considered more of a framework for Television content that is communications transport independent. It's more or less a forum or portal for one to seek and obtain the TV content of their choice as needed and on-demand (good link to a Q&A session with Brightcove CEO Jeremy Allaire who explains the future of online video distribution). The previous blog topic discussed Hulu, which is a great example of an Internet Television upstart. Though Hulu may used IP to deliver it's content, it's serving a larger purpose as an Internet Television forum. The screenshot below gives a good understanding of what Hulu does; it bridges traditional content such as SNL from content provider NBC, with other unique TV content from independent and potentially free providers.