I'm not sure where I first heard the argument of action figures versus dolls. It might have been in a Kevin Smith movie .
Hmm. So Wikipedia finally settled it by saying, "Redressable action figures are sometimes referred to as action dolls as a distinction from those which have all or most of their clothes molded on." Action figures have their clothes molded on, dolls have removable clothes.
So, I guess that means you can turn any action figure into a doll.