That is the way in which I, you, and probably everybody except Mr Rubin, is using the term the term FSM in an embedded context.
I have come across young maintenance programmers working on comms protocols and business rules that did not recognise the comms protocols and programs /were/ FSMs. To them an FSM was something they vaguely remembered from university as being something to do with parsing in compilers.
I would not have thought someone using a usenet group on embedded systems could be classified as "young maintenance programmer".
Now a computer is, in a very deep sense, nothing more than a large FSM. However, attempting to design and implement non-trivial systems _solely_ at that level is a concept that had never occurred to me, except possibly when we have all had too much to drink in the pub :)