Legally, a machine gun is any firearm that fires more than one round with a single pull of the trigger. That would include submachine guns, machine pistols, assault rifles (IE. M-16/AK-47 (real ones), battle rifles (M-14, G-3, FN/FAL, etc) and the larger crew served or vehicle mounted weapons you are referring to.
According to the ATF they are distinct categories,:
http://www.atf.gov/pub/fire-explo_pub/2000_ref.htm
In the Army you would get laughed out of the room if you called an M-16 a machine gun.
OK, I'll admit that the US Code has been dumbed down in the last 20 years since I was involved with Class III firearms to the definition you gave, (because most lawyers and politicians and bureaucrats aren't smart enough to understand the distinctions).
But among gun professionals and ex-professionals like myself, specific words mean specific things
Boy, you ought to see the shootist with the single action revolver. one pull of the trigger, and 5 rounds using the off hand to cock and release....
Definitions are the mischief!