All right, after looking through the other replies to this, I feel I need to speak up.
I've discussed this many times before, especially on Xanga, and the difference is clear to me. You can love anyone, and this is true. However, you can choose who you love. You can choose to love someone or not, and this love applies to friends, family members, the whole world. I'm the sort of guy who can't find it in his heart to not love anyone, so I honestly do love the whole world like this, although there are different 'qualities' to that love in terms of closeness. I love some people as siblings, I love some people as friends, I love some people as inspirations... you get the picture. But there is that constant compassion, that deep sort of caring, for all of them. That is love.
Being in love is different for one major reason: you CANNOT choose who you fall in love with.
Yes, you will still feel a deep compassion towards them, and you will still care about them entirely. But when you fall in love, you do exactly that: you fall into it, and the feeling is unmistakable... and you can't choose when it happens, or who it happens with.
Being in love is something truly unique because it can bring two people together closer than anything else in the world can. Your very heart and soul are illuminated by it, to the point where you cannot possibly keep it to yourself. You need to share it with the person who caused it, for their sake, for the sake of how precious they are to you.
Now this is where I'm getting upset by some of the other replies to this question.
You CAN fall in love with someone who doesn't love you back, at all.
You CAN fall in love with several people, even at the same time.
Falling in love is NOT about 'possessing' someone.
When you fall in love, it ISN'T all flowers and roses and passion.
And once you truly fall in love someone, on any level, it NEVER stops.
I am in love with at least four people right now.
The first person is a girl named Jena. She doesn't love me back. I am fine with this! She has her own life and I don't want to intrude on it whatsoever. However I cannot deny how much she has inspired me, how much I care for her, and how I could never stop caring even if I tried. I really am in love with her, even if I never get to be with her.
The second person is Genesis. He's my muse, and he looks like this. I loved him as a friend for several years before it hit this level, so although there is romance between us, it's extremely subtle. Nevertheless, I am in love with him.
The third person is Laurie, my superego. When I met her in 2006, she hated me, and I considered her an enemy. We didn't get along decently well until about 2009. And now I trust her with my life, I value her more than I can express, and I am seriously in love with her. However, on the surface it looks entirely platonic-- there's no romance or infatuation at all. This doesn't change anything. I freaking adore her, more than I can express, and I would not lose her for the world. The only person I love more than Laurie, in any sense, is this next guy.
The fourth person is Chaos Zero, and if you follow this blog then you know how deeply I feel for him. I fell in love with him 8 years ago, inexplicably so at the time, and despite my initial bewilderment and confusion, I could not deny what I felt. Now I honestly consider him my other half. Yes, I may only know him on a spiritual level, but I've experienced enough on that level to know how valid it is without a shred of doubt. Chaos has inspired me ineffably, and I still can barely comprehend how I can feel this much, this strongly, for someone. When I say I'm in love with him, I mean that entirely.
Oh, and did I mention that I'm asexual? Yeah, you don't need sexual attraction to fall in love either, and you don't need sex to love someone. Sure you can have it later (if you use it right), but it's not mandatory, and by no means does a lack of it hinder anything!
Anyway, that's my rather long response to this question.
I apologize if the beginning reads a little strangely to others; for me love is a state of mind and so I can't even comprehend the idea of not loving everyone, let alone choosing not to, but I tried to explain things in a way others can understand.
Hope it helps, feel free to ask questions, you know the drill.