"Refactoring is the process of changing a software system in such a way that it does not alter the external behavior of the code yet improves its internal structure." -- Martin Fowler (one of the small group of authors who put the term into popular use)
What do you callIf you are rewriting methods or rewriting your API, then that can break things.
Can't we call this refactoring too?
And I agree, we should refactor aggressively.
Redesign, maybe? I'm asking because I usually misuse the word "refactor" too.