The removal of backwards compatibility was fine, because it originated from a new model of PS3. Nobody bought a PS3 which boasted the feature of backwards compatibility, only to be disappointed when that feature was forcibly removed.
Similarly, the Slim launching without OtherOS was fine, but it is immoral, and further, illegal, to forcibly remove a feature from your product, especcially when the removal of such a feature can cause loss of data.
That is, of course, a separate court case. I fully believe that Sony should restore OtherOS functionality, but they are correct to be suing Geohot. DDoSing is also a rubbish way of solving anything.