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NihilCredo comments on Epistle to the New York Less Wrongians - Less Wrong
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I get the impression that you draw the distinction between 'hacking' and 'munchkining' as "They both work, but would the average guy think that it's clever or dismiss it as crazy / unfair / uncustomary?" Am I correct?
Not really. It involves the ability to do things that would make other people look at you funny, and a relentlessly optimizing attitude toward all of real life and not just computer science problems or particular locks. There may be something more to it, too. In any case Timothy Ferriss != John McCarthy (albeit McCarthy himself may also have the Munchkin-nature) and people who build championship Magic decks don't think in quite the same way as great programming hackers, though you can also be both.
Munchkinism in gaming is also generally connected to zero-sum games, so when gaming against a munchkin you either lose or have to out-munchkin them. The meaning is generally pejorative because more collaborative games tend to become unfun at this point. I've never seen gamers who do odd and massively optimized things that aren't intended for winning zero-sum games, such as building a working CPU in Minecraft, called munchkins. There always seems to be the aspect of outshining the other players within the game in munchkinism.
The analogy of this to the social sphere might be why Tim Ferriss got flak from his 4-Hour Workweek.
So, new attempt:
Closer?
A hacker is just a satisficer that places little value on a norm or norms. A munchkin is an optimiser.
Removing one constraint allows a satisficer to achieve better results on all the other constraints; by contrast, an optimiser will violate as many constraints as it takes to get the best result on the optimised criterion.
I came back to ask a similar question. I would not call the issue of choosing cryonics more then a hack. I think it is the difference is that a hacker is often some one who has optimized well in a narrow area while a munchkin will look at the whole system and optimize it and constantly look for new rules to exploit. The difference I see EY drawing is one of local optimization verses global optimization(or at least an attempting to).