I know this is a stupid idea, but has anyone ever looked into altering or modifying Lightscribe tech to replicate the wobble on PlayStation media to create a bootable disc?
You are right, it IS a stupid idea. Have you even got a clue on how the wobble based protection works?
To answer your question, yes I do understand how it works from a conceptual standpoint. Like I said, I know it was a monumentally stupid idea, but I figured I'd put it out there.
You can find this on Wikipedia about CD-Rs. CD-Rs existed long before the Playstation and so Sony and Sega both were careful to come up with schemes that could not be replicated by CD-Rs as it was obvious the technology was going to become more accessible and cheaper as time went on. While it would be convenient to burn a CD-R that would boot in any console it's not really that hard to modify the system or otherwise bypass the issue. Swap Tricks of all sorts, cheap PIC modchips, GameShark or similar cheat devices. The DreamCast situation I think contributes to the hope that other systems have a hole in their security that could be exploited by the disc alone. For North American PS1 systems with the Parallel I/O port you can get a cartridge ROM with either UniROM or No$Cash's PS1 BIOS which will utilize the secret unlocking commands to allow booting CD-Rs on unmodded systems. I think it works on PAL models too but not Asian models. PS2 has I think the much better known FreeMCBoot exploit that is combined with ESR allowing unmodded systems to run DVD-R copies that have been patched to disguise them as DVD-Video discs.