Plasma is indeed a state of matter characterized by ionized gas, consisting of free-moving electrons and positive ions. The discussion highlights that while plasma is composed of these charged particles, they can remain separate due to the high energy levels present in the gas. When the gas is heated sufficiently, the energy allows for continuous ionization, enabling the electrons and ions to remain in a state of separation despite the tendency to recombine. This dynamic balance between ionization and recombination is crucial for maintaining the plasma state, especially at high temperatures where the energy input keeps the particles ionized.