Ok, so some of you refer to MAC address, what exactly is this...and how would it work for somebody who is on like a college campus with somebody else who got banned, for instance?

The MAC address is the unique address of the network adapter (48bit I believe) in order to to communicate along the Data Link layer of the network topology. Think of it as a more binding address than IP.

Unfortunately, MAC addresses can be spoofed as well, so they'd need a combination of different things to shorten the chances that these things can be replicated.

Do you honestly believe that Sony's hands were tied and they had no other choice but to remove the OtherOS?

MAC address spoofing is a common technique used by hackers. MAC address is definitely changeable. People who break consoles aren't hackers. They are just ignorant people using somone elses code and directions. The reason Sony uses system ID is probably because MAC addresses can be easily spoofed whereas system ID's are difficult to generate.

This would have came about regardless of what Sony has done recently. Hackers would have found away to unban themselves ASAP whether or not Sony choose to go after Geo

That's exactly right. Geohot was the scapegoat in an inevitable move to slash PS3 maintenance costs.

Its very possble and being none of us where there to hear exactly why they chose too anyones guess is as good as anothers.

Who started what does not really matter now anyways though. The real problem for the legit PS3 users is whether or not latest hack really works and if it really will cause problems for them in the near future. I dont feel bad for Sony and I dont feel bad for the hacker/modders. Hell, I dont even own a PS3, but I do feel bad for those that do if and when this crap starts to affect them.

Now another bunch of idiots go to jail. 

Considering Sony knows everything attached to you console, including IP adress and TV attached to the PS3.  This shouldn't have much effect... if any.

No one has or is going to jail