pawsplay
Hero
Yes, they certainly have different connotations.
I think the term "fudge" was later adopted for two basic reasons:
1) Gary's language choice is sometimes... peculiar. I think folks would find it pompous if we talked about "overruling the dice".
Perhaps. To me says overrule means making a conscious, deliberate decision. Fudging might mean the same thing, but suggests an avoidance of natural outcomes. Arguably, that might be the right choice, but it does seem to me like a real difference. Intentional fiat and reactive changes to die rolls are not quite the same thing, although they can be close (e.g. the wandering monster table example given by EGG).
2) Gary seems to have been a strong proponent for Authoritarian DMs - what the DM says goes, and the DM knows what he's doing. I think as that general idea has weakened among players, somewhat less powerful and authoritarian terms got applied.
Sure. The GM does, however, have a rule as arbiter, and if the dice are taken as a source of authority, then the GM does, indeed, "overrule" them, as opposed to simply ruling them.