@aescling@Satsuma the distinction i think i would draw is that dish rags are for cleaning things and dish towels are for drying things. although currently i use a sponge for the former and let everything but knives air dry so i don't really routinely use either word
@alyssa @aescling @Satsuma agree, with the caveat that dish rags aren't actually used for dishes (we use them to wipe countertops though)
also a dish rag is often crochet (what some people call a dishcloth) while a towel is never crochet