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The term hardwood and softwood actually refers to the leaves that the tree has hardwood having broad leaves (that are often but not always deciduous).
The actual hardness of the wood is expressed using its Janka rating. This is the force required to embed a~ 11mm steel ball halfway into a sample of the wood. Species are awarded Janka rating based on the average rating for that species.
You are absolutely right to point this out. It's embarrassing how bad my knowledge of different woods is considering the amount of joinery I've done. Sadly mostly in MDF!
It's very true that I'm calling it redwood because it's red wood! Sometimes the bloke at the shop will mutter something about the name of this week but I'm too busy eyeballing the stock for a straight piece :)
Replacing cills with the generic red wood is a double edged sword. I've had good results with it but I tend to be a bit more sympathetic to the paint needs and I prepare them very well, until recently with the very thin Dulux weathershield primer. Although they changed the formula a long time ago I have a tin of the original blue one which soaks into the surface of the wood and provides a flexible 'adhesive' surface for the undercoat to stick to.
I do see problems with replacement cills and windows of all different kinds of wood but mostly poor painting seems to be the cause.
One major advantage it has over pine is the lack of knots. I think that is probably why it's seen as a better option by a lot of carpenters.