I want some insight on how tech people think.

Is there such a thing as Hardware Firewall?
Why is something like IPTABLES referred to as software firewall?

All firewalls have this in common:

- hardware
- software

Therefore, they are all software firewall, and hardware firewall at the same time.

Iptables doesn't run on water, or air.
Cisco PIX doesn't run on metal only without software.

Therefore, the term "Hardware/Software Firewall" has no meaning.

The same is true of course, of Software RAID vs. Hardware RAID.

Maybe the correct term should be Standalone firewall, or Firewall appliance.

What do you think?

I think the distinction is simply that a "hardware" firewall protects a network of machines while a "software" firewall only protects a single individual machine. But you're correct, both are software running on a piece of hardware and maybe the terms you propose are more accurate. Or perhaps "network firewall" and "personal firewall" would be better... Or "cheese" and "crackers"... (must be getting close to lunch)

Or dedicated firewall.