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Others have contributed good answers to this question in your sub-thread, so I will just clear this up for you:

domain tool - a tool which can be applied to, and adjusted according to the needs of the domain of your application. You can embed the Lua VM in your 'broader application' and use it as an internalized scripting language. If, for example, you've got a C/C++ program which sorts apples, you can export those apples, with bindings, into the Lua VM and reference them from the Lua language as apples, just the same ..

board-spectrum scripting language - python, perl, lua. Each of these can be (usually) found in /usr/bin somewhere, as a single executable that can be used to run the language scripts. Lua has a part in this role too - I frequently write system-admin scripts using #!/usr/bin/lua, but in this particular case I don't have any 'customizations' - I get only whats built-in to the Lua executable as shipped by my distribution.

But, beyond this, I could take the Lua VM and build my own domain tool with it. See the difference now?



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