When this topic comes up I think people want to feel if their pace is slower because they ran a "hilly" route they're justified in feeling it was slower for a reason. But I think trying to define it does have some merit. Assuming you live in an area where you have access to "hilly" terrain, I think it's an excellent training stimulus to seek it out at least once a week for a longer steady effort. And yes, your pace will take a hit.
For me personally, that's about 100+ft/mile. And if I've spent too much time running on flat areas I make sure get in some hilly runs. And if after that run my effort was even compared to flat running but my pace took a significant hit, I know I needed the work.