The functionality is same for a processor as well as microcontroller, except that microcontroller has a memory inbuilt in it and some other minor issues.
Its an microcontroller
The arm 7 will be the new pic when talking about microcontrollers... Atended a seminar some weeks ago and the info was realy promising. Several companies are developing code compilant microporcessors at low cost, starting below 3$!
As for arm8, if I remember correctly, it was a bit of step in the wrong direction for arm. CPUs built on that core is stil used in some older military applications and simular but not use for new designs. (correct me if Im wrong)
For dev board and startup info, use google. Some starting point could be...