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A little bit more.
Many of the early heel type bullets were developed originally for use in conversions of precussion revolvers, where the bullet had to be the same diameter as the inside of the chamber. The "38" calibers were equivalent to the percussion .36 caliber, which was really a .38. The bullets had the lubrication on the outside of the case, and were often called "outside lubricated". .22 LR ammunition still has either a wax lubricant or a thin plating on the bullet. When the heel type bullets dropped away, it made more sense to put the lubricant inside the case, and the modern type ammunition was the result.
Mike Irwin is correct on the origin of "Parabellum". The quote is from Vegetius. It was used as a cable address* by the German Ludwig Loewe Company, which later became Deutsche Waffen-und Munitions Fabriken (DWM). Loewe made a pistol designed by Borchardt and later redesigned by a fellow named Luger. The cable address became so well known that it was used as a trademark by the company, so the Luger pistol became the Pistole Parabellum, and its ammunition the 7.65mm or 9mm Parabellum. The machinegun made by DWM in WWI was also known as the Parabellum; as the LMG. 14, it was used as a flexible gun in both airships and airplanes, since it was lighter than the Maxim MG.08/15.
*In the late 19th and early 20th century, a telegraph address served to reduce cable charges and also to identify the company. Like domain names today, the cable companies knew where a telegram or cable addressed "Parabellum, Berlin" or "Colt, Hartford" was to be delivered.
Jim
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