I'm just not sure, Maggie. The black spots and curled leaf tips are consistent with your photos and what I have read and seen on the web, so I am fairly confident there are lace bugs involved However, there may another insect, and I do not know if it is damaging or not. It does not look like the photos of adult azalea lace wings that I have looked at. It is about 1/8th inch. red head, black wings. At rest fanned more than a beetle type insect, but not fly or moth-like either. Haven't seen one with wings spread, but with wings folded does not look lacy or lace-patterned. Still, I suspect a lace wing, even if not an azalea lace wing..

Also seeing some interesting looking insects on the native hydrangeas. don't know that they are causing any damage. Most of the leaf damage I see is consistent with earwigs (with which I have big problems), and slugs.

When I went out to my car this morning the windshield had a plethora of earwigs. When I lift pots and saucers to empty run-off from the saucers, I find clusters of earwigs.

I haven't really tried to do anything about either the earwigs or the slugs, but am going to have to do something. The slugs have found their way into the post of kale and basil, and I keep stepping on them barefoot (yuck!) on my carport after rains.

I'm generally pretty successful at keying out insects and figuring out the major culprits with insect damage. I don;t have that much time to observe and to research, right now. I also don't have the diverse plantings (don't have much planted at all) that tend to keep nature in balance among predators and prey in the insect world.

Balance.

We wants balance.