Not sure this is worth an argument over semantics, but modern "embedded" development is a lot bigger than just microcontrollers and wearables. IMO as soon as you're deploying a computer into any kind of "appliance", or you're offline for periods of time, or you're running on batteries or your primary network connection is wireless... then yeah, you're starting to hit the requirements associated with embedded and need to seek established solutions for them, including using distros which account for those requirements.