There's a band called Hammerfight, as well. The word is derived from "hammerfighting" - that's more or less a real useable word. It's probably just that the DF players are more used to "hammerings" or "hammerdwarves".
Hammerfight is worse of a name than Hammerfall (the latter has a similar ring to Daggerfall, it just sounds "right"), but describes the game more accurately, I guess. "Hammerspin" would be even more accurate.
And if you think the game is NOT about psychotic hobos... well, you probably didn't play enough of the story mode.
All of that said, HOLY CRAP! I practically stopped following the game when it went commercial and disappeared into obscurity. Its site was a bloglike page with one non-sequitur message on it. It seems the creator didn't waste too much time. New weapons, new level design, new (and better!) Arena mode... finally a link to the Arsenal if you need to swap out weapons between failing a certain mission.. and one annoying little feature that already made me delete my first character. The thing that offers you to skip a level in exchange for all of your money. You need to right click to close it, and then left click to restart. Once I did the "right-left" combo too fast and the right click didn't register... bye bye character.