What if your team and you design your game 100% and then a publisher is interested in it and want to publish it? The game stops being "indie game" to become just "game"?

It is an outdated term.

An indie game is game that gets funded and published by the developer, but now Sony an MS are publishing indie games, which is not really indie but they use that term to make sound hip.

The term indie means jack shit.

Games that either don't last more than 8 hours or spend $10+ million when developing video games

Activision is not a developer they only publish games

Works for me!

But yeah, I wouldn't really mind seeing the term die. It instantly conjures up images of pretentious faux-retro pseudo-8 bit puzzle platformers based on Kafka novels. It will be good when developers are judged simply based on the quality of their work and not whether they have indie cred or make REAL GAMES FOR REAL AAA MEN.

So Cave Story, a free game made by only one man on his free time (I think, or just very few people) that happens to be over 20 hours of gameplay is not indie?

^ This is sadly how I feel sometimes about the "indie" thing.

There are always some exceptions to every rule

There's too much exceptions to what you wrote. Maybe if you could polish your definition a bit...

No, sure it could.  But usually that just doesn't happen as where is the money to pay the people?

Usually that money is coming from some investor, and without a major lable support, it's really hard to get investors.

But if you can get 600 programers to code for free; awesome dude.