Yes, you are right that it is unlikely that Sun/JCP will be willing to change the definition of existing APIs, so devices will change, not the definition of limited.
There is a limited container specification CLDC, Connected Limited Device COnfiguration. Configurations sit above the kVM, but below a profile (profiles are built on configurations). The only other configuration is the CDC, Connected Device Configuration. It is unlikely there will be more anytime soon. Information on both can be found at the JavaSoft website.
In answer to your last question, we can sort of do that today. The issue you raise is not necessarily J2ME specific, but is common to all
Java clients. Because Java isn't a true OS, it's programs are applications, and by default, not "always-on." There are tricks to get around this. As for J2ME specifically, I personally tink the JAM needs to be better defined so that application lifecycles can be better understood by developers, who can consequently make more robust applications.
--Mark