Design is the art of planning, and it is the art of making things possible.
Design always has a purpose, art has no purpose. That's really the difference between them. Do I think one is better than the other? Absolutely not. I think they both fulfill functions.
Having no purpose is the function of art, so somebody else can look at it and ask a question. Design is different - you're supposed to understand what's going on. You can be delighted by it, intrigued by it, but you're supposed to know it's a hot dog stand.
Art has no purpose. It exists for its own sake.
I think design, to a degree, is more generous and more humanistic than art, though great art can move us more.
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