Here is what I remember from the Navy's nuclear power school back in 1984. Since it was a course based on algebra, it was rather basic, but here goes.
geni is correct about the energy resulting from the lowering mass of the fuel after fission (increase in binding energy, right?). The fission fragments are highly radioactive and actually give off about 10% of the reactor's power history for a short time. When fission products or activated corrosion products are transferred to an unwanted area, (leaks, plant dismantling) the contamination is just an undesireable occurance. The fission products have a much shorter half-life than uranium, so the activity is very high.
To be useful, many radioactive sources are manufactured from a pure metal which is exposed to a neutron flux then safely encased in a leakproof container. These sources can then be used to test radiation detectors, nuclear pharmicuticals, or cameras for testing weld joints. Depending on the task, a long or short half-life may be desired.
To just scrape together radioactive waste into a container would not serve much use because the strength and decay rate would not be easily known. Too many decaying isotopes are present.
Re-processsing spent reactor fuel results in much contaminated equipment and waste products. Much of the hardware can be reused and remain contaminated. But the U235 fission products are not useful for anything and have to be disposed of in a safe manner.
I would disagree that the waste from spent fuel is not useful for a terrorist. It can be shield and carted away. Not something I want to do though.
Ranb