What you've said is correct - the AVR is the family of the chip used on the Arduino. There's a whole bunch of 8bit AVRs with various flash/ram/peripheral/pin configurations, just as there are a bunch of different Arduino boards and clones.
However while software for the AVR is commonly developed in assembly, C or basic and loaded on to the chip using a hardware programmer, the Arduino includes a cross platform IDE (see the Wikipedia page) that is designed to make getting started much simpler. Software is developed in a C-like language (roughly based on Processing) and supports loading software on the device using just a USB cable.
What does it all boil down to? The Arduino will get you started quicker, and you'll see results faster (and they are becoming very popular in the maker/hobbyist community) - plus the Arduino Sheilds which plug in to provide additional functionality are a bonus. Getting a chip, breadboard and programmer will (arguably) give you slightly more power and flexibility - and etching your own circuit boards (optional) is a blast!