Could it propagate from computer A with an infected Emacs to computer B with a clean Emacs, simply by opening a file saved by A on B? If so, I would be pretty surprised and impressed. If not, I don't think I would consider it a virus.
Fair enough. I always considered computer viruses to be self-replicating, which I thought meant among computers, but Wikipedia supports your definition. Still, is this really self-replicating at all? It sounds more like an Emacs extension that simply "colors" files in some unique way.