My C140 had an "insensitive" altimeter and my newer Davis has a sensitive altimeter. The only difference I could find is with the "insensitive" altimeter, I could get close to the correct setting, but had to basically guess where the exact seting was. For example, it might have a line at the 29.9 mark, but to get 29.92 you are basically guessing.
On my sensitive altimeter, there are lines for every 0.02, so I can pretty much hit a resolution of 0.01.
I do not know if this is officially the definition difference, but it is one thing I noticed (and makes a reasonable amount of sense).