Is that the definition of "embedded"?
I do not know, but if code is volatile i.e. must be loaded before use, then "my" definition of embedded does not hold.

The definition of "embedded" : have used throughout is: a computer is embedded when the (uneducated) user does not realize that a computer is in the unit.

Take 2 examples, small and large: how many people realize the a cellphone is a computer? how many people realize that their microwave is computer controlled?

In your opinion, would a system that has both permanent and non-permanent code memory qualify as embedded?
yes, it would if the user is not involved in the process of stuffing code in the volatile part

Now, just to make something clear, I AM talking about the finished product, not the "development system". That my ICE (which it would be cost-prohibitive to include in the final product :) ) uses RAM as code memory does not make the system I am developing any less embedded.

Erik