Intel's website gives this definition at
http://edc.intel.com/Step-by-Step/Glossary/
embedded
At Intel embedded computing refers to using Intel’s high performance platform solutions in non-traditional computing applications. In other words, embedded includes using Intel’s processor and chipsets in computing systems other than desktop, notebook, and typical server computers. Examples of embedded computing systems include gaming (such as casino lottery, arcade, and amusement games); in-vehicle infotainment (such as onboard entertainment devices in cars); retail point of sale devices (such as intelligent cash registers and ATM’s); industrial and home automation devices; energy management and control (such as smart grid technology); military, aerospace and government computing; telecommunications; medical (such as imaging, patient monitoring and portable devices); and digital signage.
Intel® Embedded architecture is the established leader in performance and innovation. Intel consistently offers a competitive roadmap of embedded products optimized for performance, power, and value with life cycle support up to 7 years. Some embedded platforms are also qualified for use conditions unique to embedded applications such as higher operating temperatures and lower power consumption. In addition Intel works within the embedded industry to drive standards-based computing systems. As a result equipment manufacturers are able to develop standards-based open architecture computing systems with lower overall costs. Developers can reduce expenses including minimizing capital and operating expenses and overall lower total cost of ownership. Platforms based on Intel® Embedded architecture enable you to simplify and standardize the IT environment and select from a broad range of industry standards-based platform solutions from multiple OEMs. Platform choices from multiple vendors provide the broadest range of innovative capabilities including support of multiple operating system environments.