No, I am not moving the goal post at all. I meant delusions and/or hallucinations.
Much of what you are saying are non-sequitur. I mean, why would I need to treat BPD or PTSD "primarily" with antipsychotics to acknowledge that sometimes they are accompanied by psychotic experiences? Mania is defined as in the DSM; psychosis has no such definition for a reason. How is my definition of psychosis got anything to do with how you define mania? Why would this lead to an "overdiagnosis of schizophrenia"? Schizophrenia has its own set of criteria, including most importantly timeline criteria - as well disorganization, negative sx..etc.
Your assertion that it is meaningless because it has "no genetics, prognosis, treatment, epidemiology..etc" consequences. We still prescribe symptomatically for the most part - someone who is experiencing hallucinations even in something like LBD MAY end up getting seroquel and the evidence is that it helps. Do we really know the relationship between say, transient experiences of AH in otherwise normal individuals and risk for schizophrenia to say there is no genetic relationship? Someone with drug induced psychosis, which may not look like classical psychosis to you, may still end up with antipsychotics to control delusions or hallucinations.
I mean, for a concept to be useful, first of all it needs to have a somewhat of a definition so it can be used reliably between people. And I don't see a surviving definition from your part. I'd also argue that my definition is much closer to the current consensus.
I'll try to take things one at a time.
If "psychosis" doesn't guide you in choosing treatments, what good is it? What information does calling the hallucinations and/or persecutory thinking of PTSD "a psychotic experience" convey beyond saying "hallucinations and/or persecutory delusions"? Shorthands are great when they extract a useful core out of messy reality but that is not what is happening here.
If we are going to say that DSM definitions are constitutive of reality we are already on track to absurdity but I'll give it another shot. Lumping together any experience that has anything in common with psychosis is directly analogous to lumping together any experience that has anything in common with mania. For most people the later seems obviously absurd, but then think about how many patients you have seen who got told they were bipolar basically because sometimes they don't sleep well and are cranky. Labels end up mattering in practice and end up being very influential in what clinicians do. For example, in this country in the 20th century. psychosis came to be re-defined as "losing contact with reality'" by the psychoanalysts who were not especially interested in diagnosis beyond determining whether they thought someone would be a good psychoanalysis candidate. Once that became standard practice, lo and behold, suddenly vast swathes of the patient population became schizophrenic, like, say, Marsha Linehan.
Making distinctions is also important for guiding our thinking and research going forward. You're right, current US practice in many ways is much closer to your idea of psychosis. Current US practice also treats MDD as a valid category, though, so it is not a great guide to what is true about the world or sensible.
The point really is that you are casting too broad a net. Someone who is depressed can be quite convinced of their badness and the pointlessness of all things in a way that is very resistant to challenge and they often perceive clear negative significance in inocuous stimuli. Are they psychotic?
Someone with contamination OCD might be able to tell you in office they don't believe their fears are well-founded but when very distressed are much more convinced that refraining from rituals will mean their family will die from AIDS and have the experience of seeing contaminated things teeming with visible germs. Are they psychotic?
A person struggling with anorexia is absolutely convinced they are disgustingly fat when they are emaciated by anyone else's standards and systematically mispercieves spatial dimensions of their body even when looking in a mirror. Are they psychotic?
"Giving neuroleptics" = psychotic is a really poor justification given how many people are taking these things because they are depressed or anxious. I agree with you that they treat non-specifically but then their utility can't very well be cited as evidence for the specificity of a concept, can it?
Realistically dictionary-style definitions of anything rarely survive logical scrutiny and a prototype/exemplar model is more consistent with how humans conceive of these things but give me a few days and I will try to come back with operationalized criteria for you.
At the end of the day, what on Earth do you gain from calling so many different phenomena "psychosis"? Why not just describe what is actually happening? What does lumping it all together buy you? Just because the DSM is designed to be usable by undergraduate research assistants and minimally-experienced mid-level clinicians doesn't mean we have to accept its simplifications and elisions as accurate or meaningful!