And there's a clueless one.
What is hilarious about the topic that consumer usability is an important design issue, and there is no excuse that kids and grandparents trying to set up the PS3 are needlessly having to deal with an interface that deals in terms most won't be familiar with instead of making the process more user friendly?
Nothing.
"Most?" Sorry, but "most" people are familiar with setting up wifi from their phones and tablets and iPods and laptops and have encountered VARIOUS terminology along the way without getting tripped up by it like you did. There was nothing wrong with the interface there. It asked you for the password and even told you the type of password/key it needed for your particular network, which is more than most devices would.
Hell, there are people who have problems playing their DVD players - there's an old joke around the country about the blinking 12:00 because they don't know how to change it.
But what there are are ignorant jackasses who don't understand the topic.
...and there are people who understand the topic perfectly and still think it's hilarious that you would get tripped up and complain about it on a tech forum. It's even more hilarious that you are digging in your heels.
It's one things when playing a computer game required installing a memory manager and partitioning RAM, changing jumpers on cards to change IRQ's and deal with boot files.
Except it's not one of those things. Every device used various terminology. PIN, key, password, etc. Many devices back then required a hexadecimal key of a very specific length generated off of your password. Many devices like didn't even support WPA even though WEP had been rendered completely worthless (the PSP launched without WPA support; the Nintendo DS never updated and only supported WEP). By saying "WPA Password," they let you know EXACTLY what it's asking for without having to guess or use trial and error. I remember having a world of problems a year before the PS3 when something would not accept the WEP key I was generating and it came down to the HEX being different for upper and lower case while the Wifi utility generating the HEX was ignoring my case. It forced me to use a pass phrase in all caps to get around it.
PS3's are meant as a general consumer item, and it's poorly designed for that in some areas. (I won't get into the similarly inappropriate difficulty in hard disk replacement).
What's anti consumer about asking for the password that any device would have to ask for? In 2006 Windows would ask for your "key." Was that too confusing? I don't remember having a problem upgrading my PS3's HDD. I recall that formatting took ages, but the actual procedure was not difficult.