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Since you stated you don't know anything about the hobby, let me help you. (This is not a flame)

Several years ago, I had the priviledge of attending an LDRS launch at the Boneville Salt Flats in Utah. (LDRS is a very large annual launch where high power enthusiasts congregate and launch literally thousands of rockets over the period of three days)

While I was there, I got to hear a man named Frank Kosdon speak. Frank Kosdon is the founder of the Kosdon East, the manufacturer of the Kosdon TRM (Truly Reloadable Motor) system. He has a degree in chemistry, and developed various propellants used in high power rocketry.

Mr. Kosdon had much to say about BATF regulations back then. (This was back in the late 90s). Mainly his argument was against the BATF's classification of high power rocket propellant as an "explosive".

High power rocket motors use a composite propellant. If you were to hold it in your hand, it would feel and bend like a chunk of rubber. It is mixed with ammonium perchlorate, which is the oxidizer to cause the propellant to burn. (Ammonium perchlorate is also the stuff used in the Space Shuttle boosters)

Basically, to be an explosive, the material has to be capable of detonation. Detonation being "An explosion or sudden report made by the instantaneous decomposition or combustion of unstable substances' as, the detonation of gun cotton.", according to Dictionary.com.

Despite many attempts, NOBODY HAS BEEN ABLE TO CAUSE A ROCKET MOTOR TO DETONATE. The propellant used in high power rocket motors is not a material capable of an instantaneous decomposition or conbustion. Most high power rocket motors take several seconds to completely combust, a far cry from instantaneous.

And so in conclusion, it is simply not possible to make a bomb using high power rocket propellants.

In terms of using a high power rocket as a delivery system, this can only hurt the legitimate user. If a terrorist organization is capable of making explosives, they can certainly also make or obtain rocket propellant through the same channels they used to get the true explosives. Aside from that, these rockets travel so fast that one would have to get incredibly lucky to hit an aircraft without highly sophistocated onboard electronic guidance and targeting systems.

Bottom line is that high power propellants are incapable of detonation, and therefore fail to meet the definition of an explosive. A terrorist would be better suited to simply walk into a gun store and buy a whole lot of reloading powder. After all, that's where high power rocket enthusiasts go to get their supply of black powder (FFFFG) used to deploy the rocket's main recovery system.