That's how I understand it as well, and it is what I meant by Tor's 
decentralization being an advantage. I wouldn't say that one provides anoymity 
and the other provides privacy. Rather, they both provide some anonymity and 
some privacy, but Tor provides more.

Here is the information others have about my identity while I'm using Tor, 
assuming HTTPS.

https://www.eff.org/files/tor-https-3.png

As you can see, I have different degrees of anonymity and privacy from 
different parties. Not depicted is a hypothetical friend sitting next to me as 
I browse, who knows my name, location, that I use Tor, and what I site I am on 
at the time. Also not depicted is another friend who is not present but knows 
my name and that I use Tor because I have told them. Trivially, I of course 
also know this information about myself. The fact that these friends know my 
name does not compromise anonymity because I do not desire anonymity from them. 
The fact that they know other information about me does not in itself 
compromise my privacy if I did not intend this information to be private from 
them. Anonymity and privacy are things that I have *from* someone in a given 
situation. My anonymity and privacy are respected if I have control over this. 
Note that it *would* violate my privacy if the first friend betrays my trust by 
telling someone against my wishes what site I visited.

Suppose instead that I used a VPN. The differences it would make to the 
flowchart are (1) there or no Tor relays, (2) my VPN has the combined 
information of the Tor relays, (3) my VPN also has my payment information. Are 
my anonymity and privacy respected? That depends on whether I am okay with .a 
VPN having this information about me (I would not be) and whether they give 
this information to anyone else (they might). However, my privacy might also be 
violated while using Tor if for instance the Police get my username and 
password from Site.com. Neither situation is perfect, and for some the extra 
protection of Tor might not be worse how much slower it is than using a VPN.

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