I think Taylor hit the nail on the head. By now the term is so hyperbolic and contrived it really shouldn't be used at all. I think an easier distinction would just be AAA games and non-AAA games, or why not even go ahead and use the full spectrum of movie labeling instead of only the top tier? AA games? A games? B games?
Nah, indies would probably bitch and whine over all be labeled B games.
It seems the general consensus here is that indie games are better because they have more freedom, even if they are missing the necessary funding. I don't think I can argue with that, although it does lower the barrier to entry. Which perhaps isn't a bad thing, but it just means people without experience get put in positions where they don't have the skill to pull things off properly. However my biggest gripe with is people taking the label of indie and using it in ways to justify shitty quality of games (be it art or design). Being that I have seen the inside of at least one indie community, I can honestly say it's way too prevalent.
Another thing that is prevalent in the indie community is the focus on idea and execution of idea in a game design context. There's almost no focus on games as a whole, on how e.g. environments and graphics may have influence on games. Nobody dares do 3D indie because they know it will be shit. For people who supposedly are to take people out of their comfort zone, they do little to go out of their own. I don't dig on that at all.