What is the difference between egoism and egotism?

As I harrumphed in Nick Nicholas’ answer to What is the etymology of the word “egotism”?:

There is a recherché distinction that some people have made between egotism and egoism in English: egotism is a bad thing, egoism isn’t. But that distinction is pretty much made up, and noone really bothers with it any more.

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