Current wording at the top of Places page:
Places are searchable destinations in the Waze map. They are similar to the "Points of Interest" found in certain popular GPS devices.
Area Places appear as polygons in the Waze app. Too many of them can clutter the map, creating large gray zones that do not help Wazers orient themselves. Therefore, it is important to use area places only when they are distinctive and significant enough to orient drivers, Exceptions include gas stations, and parking lots which receive special handling.
Point Places don't appear on the Waze app map. They can be used to help Wazers find private homes and public places, especially when they are not already listed in the other destination search engines.