Great response Chela...well put, and good for many people to know because I'm quite sure that most (including me) have never had a clue about this subject.
I just have one addition though about your explanation of the origin of the word Alchemy:
Alchemy is Al-Chemy. Al is Allah, or El, the God of Light. Therefore, Alchemy is the Chemistry of God.
Any reference to "Chemistry" in Alchemy came much later...after the industrial revolution. This is probably because Alchemists were performing what today would be construed as "chemistry". However, what this means is that the word "chemistry" originates from the word "alchemy", and not the other way around.
Egypt was not called "Egypt" in ancient times. The ancient Egyptians, and other cultures around them during those times, referred to Egypt as "Khemet". Khemet was in reference to the black soil that appeared along the Nile after the flood seasons, and is what was so important for growing their food.
After the Arab (and Islamic) conquests of "Khemet" the word was still used, and anything that originated in "Khemet" was called Al (or El) Khemet, meaning "from Egypt" in Arabic. This term, especially in Europe, later evolved into "Al Chemie", with the same meaning...and in English this was spelled "Alchemy", in reference to where the spiritual practice originated.
What this means is that the term "Alchemy" did not have much to do with "chemistry", at least not in the beginning. The term simply became synonymous with "chemistry" (and vice versa) much later, and is still mistakenly referred to chemistry by the scientific community today. This is probably because science has little time for spirituality, and will not entertain the thought of investigating that aspect of alchemy simply because spirituality is not yet something that science can investigate. Unfortunately, if science cannot prove or disprove something, that "something" will simply be ignored.
However, our current English word for "chemistry" certainly did originate from the term "Alchemy".