Hi @SusanNiemeyer,
I'm not totally sure is "teams" is the right terminology here, as there could be confusion with the Microsoft product or translations. That being said, I totally agree that "groups" causes a lot of confusion as it's such a broad term. As sections are often tied to an SIS and something that many schools.institutions wouldn't allow teachers to modify, I've suggested in the past perhaps having two different "types" of groups (though I know this could be confusing too). "Collaborative groups" would be the existing functionality, made for students to work collaboratively in teams together. "Differentiation groups" would be more like sections, where teachers could create different groups of students who perhaps have different deadlines, different work, etc form the other in the class and it's too painful to enter the individual names on each and every assignment. I know my terminology definitely needs work, but I really think Canvas could benefit from some work in this area (without breaking any current functionality, as that would be totally unacceptable for most users).
Maybe we should collaborate to come with a solid idea for this once the new process opens up!
-Chris