Nick,
This thread was initially about the effect of the ground on autorotation. In an attempt to answer this, the question of what is Ground Effect arose. It appears to be a valid one. Even Leishman, University of Maryland, says
"The [ground] effect has long been recognized but the aerodynamics are still not fully understood."
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Here is a description from the Internet, which represents your position, I think.
Ground effect
Another common phenomenon that is misunderstood is that of ground effect. That is the increased efficiency of a wing when flying within a wing length of the ground. A low-wing airplane will experience a reduction in drag by 50% just before it touches down. There is a great deal of confusion about ground effect. Many pilots (and the FAA VFR Exam-O-Gram No. 47) mistakenly believe that ground effect is the result of air being compressed between the wing and the ground.
To understand ground effect it is necessary to have an understanding of upwash. For the pressures involved in low speed flight, air is considered to be non-compressible. When the air is accelerated over the top of the wing and down, it must be replaced. So some air must shift around the wing (below and forward, and then up) to compensate, similar to the flow of water around a canoe paddle when rowing. This is the cause of upwash.
As stated earlier, upwash is accelerating air in the wrong direction for lift. Thus a greater amount of downwash is necessary to compensate for the upwash as well as to provide the necessary lift. Thus more work is done and more power required. Near the ground the upwash is reduced because the ground inhibits the circulation of the air under the wing. So less downwash is necessary to provide the lift. The angle of attack is reduced and so is the induced power, making the wing more efficient.
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Here is another statement by Bell, when describing their proposed Quad configuration.
.... with a ground effect cushion that provides a significant up-load on the airframe.
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Here's another.
The ground reduces the vortices coming off the rotor blade tips, reducing induced drag.
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Dave J.