It's true. An arcade is a location. It's actually a Roman/Latin term referring to a roofed in area. Which then evolved into a roofed in shopping area. Which then referred to a amusement hall. Coin-op machines starting popping up in these halls and got the moniker "arcade machine" but you can't separate the two terms. The arcade is the place, the arcade machine is what's in the place.
I prefer the term cabinet... it doesn't have these strange distinctions.
Same goes with MAME... you can have a mame cabinet, but you can't refer to it as your mame. Mame is what runs on the cabinet, it isn't what the cabinet is.