I am thinking about using the term “Lightning Account” versus “Lightning Wallet” to differentiate between actual accounts in sats that have a Lightning address, versus the actual app. This is relation to the service I am building asats.io which is a custodial lightning payment solution. Any thoughts?

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Not directly on point, but that made me think that lightning balances are actually account based, unlike on-chain balances

You can say that everything is a balance - even a UTXO, which is actually calculated from the chain transaction. I am pretty happy with the term ‘balance’, it’s all of the confusion around wallets. The parallel I am thinking: users know what a savings account and checking account are: that model is easy to extend to a ‘lightning account’