Well, in reading these comments, it seems you aren't the only one that confuses SW with hackathon. Maybe it's the people I know locally and how they make sure to differentiate their SW and their hackathon, and how they are distinctly different. Maybe other locations just sort of stress a greater emphasis on hacking than the business side.
Regardless, it doesn't seem like you are alone. =)
Especially where I live (Lexington, KY) there are not a plethora of true hackathons to choose from. There are a few smaller language-specific groups that do some event but SW is by far the largest of it's kind in Lexington. So I jumped on SW when I found out about it. It was neat just not really what I was looking for. I get most of my "hackathon"-energy out by just meeting up with friends to work on an idea on a weekend.
Regardless, it doesn't seem like you are alone. =)