There is far more structure in entanglement than your simplistic definition seems to be implying. Yes, you could ask a question
Is there any entanglement in this pure state $|\psi\rangle$ of $n$ qubits?
Which can be answered by whether or not the entire state can be expressed as
$$
|\psi\rangle=|\phi_1\rangle|\phi_2\rangle\ldots|\phi_n\rangle
$$
but as you are rightly realising, you can ask far more structured questions of
is qubit $i$ entangled?
or even
is qubit $i$ entangled with qubit $j$?
or
What sort of entanglement does qubit $i$ share with different qubits, and how much?
The first is answered in much the same way as your original strategy: if it can be written as $|\phi\rangle_i\otimes|\psi\rangle_{1,2,\ldots,n\setminus i}$, then qubit $i$ is not entangled with anything. In your example, qubit 2 is not entangled, but qubits 1 and 3 are.
The second is far more subtle, and perhaps requires a more precise definition of entanglement. Should we say that qubits 1 and 2 in the state $(|000\rangle+|111\rangle)/\sqrt{2}$ are entangled? If you look at just those two qubits, they are in a maximally mixed state, i.e. not entangled, but they are definitely part or an entangled state that cannot be localised to any pair of qubits. Hence the question about the type of entanglement.
Ultimately, this really comes down to a question of why are you interested in entanglement. Usually, it's to do something with the entangled state, so you have a measure of a given state's usefulness (and that is often some form of entanglement measure), and you can ask questions with respect to that particular measure.