I like to see it this way: A shell /wraps/ the kernel. You cannot issue system calls directly, but a program that handles user input generically (and ideally dynamically), can do this for you. A desktop environment, Emacs, and to an increasing degree web browsers are all different "shells".
A shell is a program dedicated to allowing an operator to launch other programs. It can be as simple as a menu or as complex as a COM-interfaceable GUI with graphical desktop metaphor. It's often configured to but not strictly required to automatically launch on user login.
Any user-space executable can issue system calls, the shell isn't special there.
