While there are some planes that cross the lines between AFR and Kit, such as Composite and Aerotech planes, Most would agree that a kit is one that the builder fashions from non-recognizable separate parts (wood, glass, etc) to one that is a recognizable structure.
I would like to see the distinction between the AFR's and the Kits. I have both and I build both. Separating the categories helps reduce the amount of "information clutter" available on the net. My .02