as you said in the post above this one, "I think people are getting paranoid ..."
putting an option to install linux on the ps3 in the first place was the biggest olive branch in the world sony could have done to the hacker/homebrew community to let them run their custom code on a ps3.
but despite that they gave sony the finger anyways -- first with the other OS overflow bug then by deciphering the ps3's security key.
hell, sony also lets you use a standard HDD to upgrade your system unlike the 360's proprietary drive.
sony doesn't give two-shits if you mod your consoles casing and it is ridiculous you'd even think they every will. sony is trying to protect the billions of dollars in investment they've put into the ps3 and rightfully so.
the otherOS feature also brought forth a massive amount of advancement in the medical field. So do not ignore that.
And deciphering the security key and hypervision was needed. Red Hat, Fedora, and several linux distros funded hacking competitions to try to discover how to improve linux on the PS3. Only way to do it was by bypassing hypervision because it locked out the use of the GPU. If Sony and Nvidia would have just given linux distros the drivers to the RSX there would never have been a reason to try to bypass the hypervision and security.
Sony starting retract the OtherOS function after GPU code was being released so that more advanced visuals could be used by linux distros.