There has always been cross-over between the various terms, and it is only in the last 100 years that scholars have tried to distinguish between them, proposing that a 'psaltery' is plucked while a 'dulcimer' is hit, and that both belong to a generic 'zither' family (distinct from specific instruments called 'zither' by their players); but this usage is an abstraction and has no basis in the traditional use of these names: there are plenty of illustrations where psalteries are hit and traditions where dulcimers are plucked.
The point is rather that a distinct type evolved from about 1500 in which the strings were placed in different planes, presumably to make it easier to distinguish between them when they are hit with a hammer, but after that they were still plucked in many playing traditions.
Paul Gifford and Karl-Heinz Schickhaus have researched the salterio in 18th century Italy; there are instruments with up to eight strings per course (i.e. 8 strings tuned to the same note and played all together, like a 12-string guitar or the middle and upper notes of a piano), made in places like Venice, Florence, Brescia, Milan, and Triente[citation needed], and signed by ten different makers.
A salterio was bought for the Ospedale della Pietà when Antonio Vivaldi was working there; it cost more than a cheap violin, less than an expensive one.
Rogério Budasz has published a beautiful facsimile of Antonio Vieira dos Santos manuscript from about 1820 Cifras de música para saltério, together with a transcription, analysis and bibliography (ISBN 85-7335-078-4).