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My understanding has always been that hubs are on the bottom (only allow network traffic 1 way at a time[ex. 100 Mb/s in 1 direction]), then you have switches (allows network traffic to flow 2 ways [100Mb/s in both directions]), then comes a router (allows network traffic both ways and tries to find the shortest route between point a and b).
It works out to
a switch = a smart hub
a router = a smart switch
a better example of the difference between a router and a switch are those dsl/broadband routers, the router has that extra port for your cable/dsl line. A switch would see it as an extra port, a router would "know" to direct all internet traffic to that port, but not direct any internal network traffic.
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