Survival Kit for me. I carry the essentials spread throughout my pockets, and some duplicates in my pack that get used for normal activities or get used first in a bad situation (a full FAK is always in the pack as well).
I don't make fires when I hike (my location). I don't sterilize water, because I bring water in a bladder or canteen. I don't have to use my space blanket, because I'm clothed and dry or it's warm out. I don't have to signal anyone unless something has gone wrong. I have a basic full sized compass with the map of the area, and don't need the button compass in my kit. Nothing I carry in my PSK would be used first for serious injuries (though I could improvise if I didn't have the full FAK in my pack).
I don't normally use these things when out hiking; and even when practicing using the items, I have duplicates. However, I do keep track of items with short shelf lives and replace them when necessary. That doesn't mean I don't know how to use the items in my kit. The things that go in my PSK, only go in there because I've used them (or their duplicates) and trust them.
Typically, I walk, eat a sandwich, drink water, see the sights, maybe do some carving, maybe rig up a temporary sun shade, maybe put a bandaid or moleskin on a small cut or blister. My normal hiking activities don't require the use of the items in my PSK. I can see how the kit melds together though, for people who do make fires on every outing, or sterilize water from streams during the hike, or want to trim weight by carrying one do-it-all kit. Or perhaps for the SAR guys, that have to pull this stuff out all the time for people in bad situations. But for me, they're separate. The woods kit encompasses the few items in my pack that are used in normal activities, while the survival kit is the stuff on me at all times that is reserved for emergencies.
I also like keeping a distinct PSK because it's something that becomes routine. No matter if it's a long trip or a short jaunt through a known area, it's a habit to put the defined PSK in my pockets. That way, I never fall prey to "oh, it's only a short lil walk through the woods." I know for sure I have what I need if things ever turned ugly, and I can be sure I didn't leave something behind because I thought nothing could possibly go wrong or because I would have no need for so-and-so item that day.
ETA: I have to say that I'm making more time for "skills practice" while hiking nowadays (not in the neighbors yard or kitchen/living room)...so maybe things may change.
