RE: I always hear this story...
I agree with the statement that you should hunt the wind but I also acknowledge that it isn't always feasible 100%. If I only hunted the wind I would probably only hunt one or two times a year on my property. The perfect wind is a NorthEast wind for my property, depending mostly on which exact spot but mostly it holds true. That wind rarely happens, especially during bow season. Mostly the wind is from the West, occasionally South, and even less so East. I'm in mountain country so I mostly play the thermals and hope for the rest. If I am hunting somewhere else I will try to play the wind as much as possible and some stands I won't hunt unless the wind is perfect but that's because the setup is so strict as far as the direction of deer travel. When the setup is perfect for a deer to be funneled from a specific one or two direction I'll use the wind but often they can come from 360. I have seen YOUNG deer disregard wind and be directly downwind from me but rarely have I seen mature bucks not bolt when they cross downwind. I've often wondered how many bucks I didn't see because they winded me long before they got near me, but I try to make the best selection I can with the limited options I have.
As far as deer distinguishing activity they certainly do. They pattern us better than we pattern them. I have does and bucks come into my yard and stand 10 yards from me WHILE I AM PRACTICING WITH MY BOW and eat apples from my trees. I can talk to them and walk to and from my target and they may be a little skittish but they see me practicing all the time and don't associate that with danger. If I tried that in the woods they'd be gone.