Yeah, true. Whatever works best for your group is probably best, but the main part is the second bullet.
Oh, and I'm gonna add this to the first post, but for those of you who've already read it, Hide in Plain Sight now allows Hide checks to be made regardless of whether one has Cover or Concealment (actually, based on my definition of being observed, it already does, but now it's explicit), while Camouflage... should do something else. Maybe a reroll on a Stealth check in the appropriate environment?