I don't think you quite understand how it works. They know that by people coming up with these things for the device means the thing gets its own advertising. If the thing sucked and nobody was coming up with anything due to the stubornness of the device you would be hearing nothing about it. By having open code as Kinect has people can create their own experiments/apps or whatever. By having it closed or having it far harder to use as Move is just means less people will try and create with it. The fact we have seen nothing from it isn't something to praise as you would seem to apply. As now shown with Kinect and with so many things before it the community will always come up with great ideas for these things to be used with.

For a company like Microsoft (or Nintendo) there is probably no real reason to "fight" these hacks because they don't really do any harm; but (at the same time) you can't really support these hacks because if one of these alternative uses breaks the device you might be liable.

With that said, the Playstation Move hasn't been hacked because it is a less interesting device ...

It is the Eye-Toy/PSEye which is essentially just a web camera and a Wiimote without the IR-camera on the front. Most of the "hacks" I have seen involving the Wiimote used the IR-Camera; and the hacks that are possible using the Playstion Move style set-up have been possible for years.

everyone's too busy trying to hack the ps3 itself.

They never get  the chance to hack it since every time they try their girlsfriends get upset for taking their "toy"

Does the move have a vibrate function?

Pretty much this.  While the Move is clearly better than the Wiimote in every way, there's not a whole lot else new to do with it.  There's just not a huge point.

I may buy Kinect even if I don't own a 360 if there's some cool hack for PC come out. Turning hotkeys into gestures would be a good start.