Mamsram,
I don't think there is really a difference between a snow "blower" and a snow "thrower". I suspect it's either a difference in marketing terms, or a common mispronunciation, that has brought us "snowblower". If you look at how these machines work, you may find that "thrower" is more accurate because they use mechanical pieces to move the snow, as oppsed to using air to move it.
As for 2-cycle, yes that means you get to mix gas and oil; and not just any oil, but special 2-cycle-engine oil (the difference has to do with the oil's "weight" rating). I also thought they only made them for smaller engines, but I haven't looked under the cowling to see how big my engine actually is. I do know that several manufacturers still make 2-cycle engines for lawn mowers, so perhaps they're not as uncommon as you and I think. Most of Toro's smaller throwers are 2-cycle; I don't know about other brand's lines, becasue I didn't research them as much.
There are also electric snowthrowers (sometimes called "electric snowshovels"), but they tend to have small clearing widths and low maximum depths, and you've got to mess with an extension cord. However, that may be all you need to clear your walkways and small areas. They're generally less expensive than a gas-powered thrower.
I picked my model for its middle-of-the-range clearing width and maximum depth and upper-middle-of-the-range horsepower, because I needed to clear my driveway AND my walkway, and wanted something that could handle the typical soggy-wet snow that falls in Cincinnati. Of course, being a power-tool hound, every purchase I make is a compromise between cost and MORE POWER. See my "My new favorite power tool is..." thread for a picture of my favorite "snowthrower"...