yeah it does make scense, i dont wanna start a full blown argument, lol, but in lamen terms Hacking means to break into something to get something out, and cracking means to break into something and modify it for a use its not ment for.
I suppose in the 21st century you can use the term hacking as there is no real meaning to it anymore, if you hack something youve basiclly gone through some programming and modification to get it that way.
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cracking relates to pc software and the PSP isn't a PC.
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The operating system that runs a PSP is software, the games u play are software, and the firm ware is also software but for a PSP, there is no other names for it, unless u wanna call it PSPWare, start a new trend off or something,
Also im sure PSP use a Unix based O/S .