it is, people are just being picky, but many softmods have had game requirements attached to achieve, like splintercell etc on the original xbox smash bros/twilight princess on the wii (inb4 bannerbomb etc.....yeah, but softmods needing games came first)
people will always want a 100% free method, you know omitting the fact that they have bought a console, but resent spending a few bucks on anything else no matter how much they save in the long run
softmod, just means the exploit is completely software based and not based on addition hardware....i would class a game as software, even though the cart itself technically hardware