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With the new line up of Mac Minis we can have up to 16 GB of RAM, and 3.0 GHz CPU, and therefore they can act as a server. But why did Apple just drop the 'Server' keyword from the Mac Mini category?

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They haven't announced a Server version, it may come later.
Only Apple can know that.

The 'Server' version was not the same as the regular version, it had 2 HDs, no optical drive & had OS X Server installed, rather than the desktop OS.

From EveryMac

For all practical purposes, the "Server" configuration is identical to its non-server contemporary, but ships with dual hard drives and a pre-installed copy of OS X Server for Mountain Lion.

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Apple has dropped server from its lineup.

http://appleinsider.com/articles/14/10/16/apple-discontinues-mac-mini-server-limits-storage-options-with-latest-hardware-refresh

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