Maybe this distinction could be drawn, but it seems to me that the two terms have become virtually synonymous; for that which is felt to be adorable in Japan is invariably cute, just as those things regarded as sweetly endearing invariably solicit feelings of powerful affection amongst dedicated fans and followers.
These feelings can, of course, become eroticised, but an explicit sexual element is not usually key; the relationship established with the (often fictional, not always human) object that one finds too darling for words, is romantic, ideal, and disneyfied rather than obscene or pornographic.
Having said that, there's obviously a fetishistic aspect to moe and one can't ignore the fact that the figure of the doe-eyed, nubile young girl is central within this genre. One might describe devotees of cuteness as bambisexuals who are more interested in imaginary petting and fantasy perving, rather than the actual penetration of bodies or committing sexual crimes involving real children or live animals.
Whatever we might think of this phenomenon, the fact is that kawaii is increasingly accepted in Japan as part of their culture and national identity; one that incorporates older elements of beauty, refinement, magic and myth into an aesthetic and a sensibility that is playful and postmodern in character.
And, ultimately, cuteness surely has to be preferable to the cruelty and asceticism that characterized imperial Japanese society; given the choice, I prefer Hello Kitty and Harajuku fashion over the way of the warrior.
