I had the question if you have the option "any user with read access" is able to see drafts, then what's the  distinction of unapproved vs. approved status? My answer was the status column (pending, approved or rejected), and of course the ability to filter views/displays, but am I missing anything?

Thanks in advance.

There are 3 classes of users when using the "any user with read access" option.

1) Users with Read Access

2) Users with edit access

3) Approvers.

Both #2 and #3 can always see "draft" items. The option simply defines whether you want 'read only' users to also be able to see them.