What is the difference between a reseller account and a normal account with addon features?

An addon account allows pointing of a domain to a sub-domain. It will create a seperate FTP login for the addon domain, but it will not have its own control panel. All domains will be inside the main account(domain). 
A reseller account allow you to create packages, and create hosting accounts within your reseller account limit. All domain will have its own CPanel, and all space and bandwidth is shared between the domains. All account created has full features of CPanel5. 
Reseller accounts are designed for people with interest in starting their own hosting company.
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