In my opinion and experience, I offer that illustration is a component of graphic design. In a layout that includes an illustration, that figure must fit in place for the best impact on the observer's eye. A page must flow and an graphic must be scaled and placed in such a way that it does not interrupt that flow. Even if the eye is meant to linger on the illustration, the flow can be continuous, moving around the figure, before going on to other parts, or to the end. A good designer knows a bit about psychology to be able to create effective layouts, and the placement of any graphic element, whether illustration, photograph or typeography uses this knowledge. In an ideal situation, the illustrator would be the designer of the layout, so that the graphic can be created in such a way as to fit the page, rather than the layout be arranged to accomodate the graphic. Next best situation would be that the illustrator and the designer work closely, in order to avoud compromises that detract from page's intention. In any case, both, the graphic designer and the illustrator must know the elements of good composition, so that the page "conflicts" are usually kept to a minimum. I, too, love to draw, and consider myself an excellent illustrator. But business demands mean that I must be flexible, and my training as a graphic designer means that I don't have to turn away clients, whatever they may need. It means that if a client needs a graphic, and can't afford to pay me for original artwork, then I must resort to clip art of someone ELSE'S work, and make it fit in the client's layout. It's a fact of professional, commercial, life, and, both, the graphic artist and the illustrator bring their, separate, expertise to the game. So many of the answers, here, have got it SO wrong, such as "Peter K"s response that illustration has no type. I've done plenty such illustrations, including logos, sign painting, book covers, etc. Or, "kathiekai"s suggestion that graphic design did not exist before computers. The appelation of "artist" appies to the designer, as well as the illustrator.