Fishkr,
What is your objection to using the word "development" to describe technological change?
It can also describe a process of iterative change and will not get confused with biological evolution.
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My objection is based on the fact that the words don't mean the same things, and therefore it seems like a mistake to use them interchangeably.
IMHO the compression of language is a bad thing. It may not be overtly obvious, and my point may seem abstract, but think about musical recordings: A live performance will always have more information than an analog recording, an analog recording will have more information than a digital one, and an MP3 digital recording will have even less.
In almost any context you can name, "develop" invokes one entity/thing doing something to another entity/thing. It is therefore laden with a "top down" implication. The word evolution actually has the opposite bias. It implies or invokes self-propagating phenomenon, or at least is neutral.
For example, one might say, "The man developed a tract of land and built a shopping mall". You would never use "evolved" the same way. Unless you very cynical, or reaching for extreme irony.
Therefore, by suggesting the words are interchangeable, or by using them interchangeably, you would be compressing the language and losing meaning(information). As in music, "compression" is fine if you want convenience, but it's no substitute for the real thing, or the next best thing, or the next to the next . . .
And also within the context of this thread, using a word that has a "top down" bias for tech evolution may fly in the face of meme theory, which more or less says, "Ideas have a life of their own" . . . definitely a bottom-up concept.