I don't think that that distinction between "key" and "key name" matters to us very much and so we should use one or the other and not both.
I happen to prefer "key name" over "key".
I just think that "key name" reads a little better when we are also using the phrases "key reference" and "key definition".
Having "key" by itself can be somewhat confusing, because it makes it seem like a "key" and a "key name" are two different things.
And while they might be two different things in some strict sense, I don't see that difference as being helpful as we use the terms in the DITA 1.2 spec.
-Jeff
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