Yes, you're right David, as far as I can see, this loose use is only with people who are dealers, craftsmen, collectors.
A tukang wrongko who did a lot of work for me used "pusaka" for everything, it confused me for a while, so I asked Pak Parman why, and what he told me was that it was a way of showing respect, respect for the object, respect for me.
After that I noted that when "pusaka" was used rather than "pedang", or "tombak", or whatever, it was usually in a situation where somebody was being very careful not to offend me, as in a buying situation or where it was wise to keep on good terms with me.
I think this imprecise use of language probably occurs in all languages, and apart from carelessness & ignorance there is probably a good reason for it.
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