I don't think so. If one day the federation grew around and completely enveloped the Romulan Empire, the capital world of the Romulan Empire would not be (as Picard put it) "a planet in federation space." Now yes, the federation does most likely resembles a hunk of Swiss cheese, with numerous voids where the federation doesn't exist. Individual star republics, little empires, other federations and primitive worlds too, none of these would be "in federation space."It's more of a case of an unincorporated planet within Federation space.
The ringed world was "a planet in Federation space."
