My concern, and I have taught needlepoint to over 1000 people, is that the information you give is incorrect.
Although you say that needlepoint is usually done with wool, today this is far more the exception than the rule. Modern needlepoint is characterized by a variety of threads and stitches.
More to the point of the question is the difference between cross stitch and needlepoint. Cross stitch is done from a chart, using one stitch almost entirely on fabric, generally using stranded cotton, although silk is also used. The fabric has small holes and thick threads or groups of threads.
Cross stitch charts are done so that one block of the chart equals one block of the fabric (where the fabric is woven in blocks).
Needlepoint, on the other hand, is done on canvas, a stiff mesh with far larger holes and thin threads. In needlepoint you stitch over the intersections and are actually making a fabric, while in cross stitch you are embellishing an existing fabric.
Needlepoint designs can be charted, but far more popular are pieces where the design is already applied to the canvas, either by hand-painting or by printing. An outline can also be drawn on the canvas and filled with stitches.
You use "needlework" as a synonym for needlepoint; this is incorrect. Needlework is a synonym for the larger term of embroidery, of which needlepoint is only a small part.
Synonyms for needlepoint include "tapestry" and "canvaswork."
Finally, you seem to indicate that needlepoint is out-of-date when in fact it is rising in popularity and creativity. Cross stitch, while still done by many, is far less popular than in the 80's. Keep stitching, Janet P.