According to Dan Hsu on the July 19th EGM Live podcast, "Sony's looking into it and they want to call them 'entitlements.' They want to basically rip off the same idea Microsoft has and just giving you different rewards for playing through their games."
Not only is the name a little close for comfort (how about PlayStation Life), but the definitional differences between the two words are irreconcilable! An achievement is defined as "the act of accomplishing or finishing," while an entitlement is defined as "the state of being furnished with a right or claim to something." I suppose the logic could be that if we trudge though a bunch of crappy launch games, we'll be "entitled" to some sort of reward. Hardly the message Sony's trying to promote.
[Via Club Skill]
Listen - "they want to call them entitlements" (.mp3, about 10:30 in)