The recent released of a PS3 hack compelled Sony to reminds its customers that the use of such software is a breach of contract and violation of "Terms of Services and User Agreement" for the PSN and SEN.
While not explicitly mentioned, the "consumer alert" quite clearly relates to the release of the LV0 Key hack, which allows system updates to be decrypted and enables users to install any system update on the console, as long as they are running firmware versions above version 3.60. The hack also allows users to boot from alternative operating systems, a feature that was removed beginning in version 3.21, and run video games from copied game discs.
Sony said that unruly PS3 users who run the hack and refuse to remove it will be disciplined by being permanently banned from using the PlayStation Network and Sony Entertainment Network. According to Sony, the hack violates the "System Software License Agreement for the PlayStation 3 system invalidates the consumer's right to access that system."
The company said that it takes this measure to "help provide a safe, fair, online environment". Apparently, no users have been banned yet. However, Sony said that "consumers must immediately cease using and delete all unauthorized or pirated software from their PlayStation 3 systems," if they want to "avoid permanent termination" from the network.

I agree with Sony on this one. They have sold many consoles at a loss with the expectation of selling games to recoup the costs. Also they are only forbidding using these systems on their network, you own the hardware do what you want, just don't connect to PSN. Seems completely fair if you hack the hardware, don't support them by using pirated games, they should not have to endure the added expense of you using their network/server resources.
correction "help provide a safe, fair, PROFIT environment"
Not your right to tell me how I should and shouldn't use my hardware.
I'll give it 2-4 weeks before this hack is successfully cloaked from Sony.
Scratch safe and fair and its more to the truth!
I agree with Sony on this one. They have sold many consoles at a loss with the expectation of selling games to recoup the costs. Also they are only forbidding using these systems on their network, you own the hardware do what you want, just don't connect to PSN. Seems completely fair if you hack the hardware, don't support them by using pirated games, they should not have to endure the added expense of you using their network/server resources.
Just one more reason not to bother with a console; yours, or any other.
If I buy hardware I will use it any god damn way I see fit.
What's next; Ford will tell my in which states I may drive a certain model, and which states are off limits unless it is a red Mustang ?
Maybe you are independently wealthy, or maybe you are unemployed and living in your parent's basement, but I find that profits are a good thing because they pay my salary allowing me to live. If, by chance, you also get paid a salary because your employer makes a profit, then your hatred of profit would seem contrary to your own well being.
Not to disagree with you, but if it's such a big deal, pull any computer out of the trash and put Ubuntu on it, it will run just as good as it did on the PS3.
I don't see why you can't hack your console to do certain things, as long as you are not copying games (which this allows) or cheating online.
This is one of the reasons I bought a PS3 too. And when they took it out because of the "hacking", it actually indoctrinated me to the PS3 hacking scene for revenge purposes...
I also lost ALL DLC related to my account, ALL trophies etc....
Maybe I will give this a try.
I got nothing else to loose from PSN.
Anyone that uses Linux knows that terminal is a required thing to make drivers work in some cases, scripts for this or that..and if you are really good at it you can do bad things easily(if someone makes you mad). Linux Crackers are not a group you want on your bad side.
I just upgraded one of my consoles to 4.31 , I don't play online , but due to drm I can't play the latest blurays or sync my trophies without this crappy update. So much for "you can keep your other os and other abilities if you don't upgrade". M$ should buy out there stock and IP and redo it all under one roof. Uncharted on xbox live anyone?
In all fairness any hack that lets you compromise their network is bad, but the should be more understanding of their(shrinking) customer base if they wanna stick around.