There was piracy before Geohot released the hack 

ok lets look at both sides.

sony's side
they call it propaganda that what sony says about piracy, but it is pretty much a fact what sony says of course anon twisted the words a little to say that sony was saying "that piracy is the only thing that would come of it." the way anon has defined what they want is not what I and anyone else who games on a games console wants. that would basically leave consoles meaningless.  

the closed protected environment helps developers make profits on there games because it is secure from piracy until it gets hacked. they can then make games specific to that ecosystem and consoles hardware this gives developers a strong platform that garantees anyone who owns the console can play the games unlike PC.  with someone trying hard to get you there costumers the best games and the best services (competition is always good). fair enough more features and choice should me made available to user and hopefully the rumors that have been going around for years about chrome come true. Sir Howard Stringer knows this if I can find the article where he said it I will edit it into this post.

edit here it is:http://www.sonyinsider.com/2009/05/08/neas-interview-with-sir-howard-stringer-a-knight-in-sony-armor/

If they destroy this enclosed ecosystem and get this console to be left wide open and sony may no longer get the support for the games that they need and as a result make less at lower quality and sony would have little point to support the console other than sell hardware. then I will probably give up on gaming as my main hobby. that might actually be a good thing, I could get on with some work.

I like open systems too they help people come up with new Ideas but some Ideas need to be protected so that they flourish that is why patent and copyright laws exist. imo you need a balance between closed and open to get the best results and that what most company's even sony aim for but anon seems to be all for open with no balance.

if you want an open system there is an alternative, it's called a PC.

anon side (after reread: not so much)
if you bought your ps3 for linux don't update your firmware past the update were it removes it. yeah that is not fair maybe sony should have give them some kind of compensation for there lose but they weren't obligated too and had every right to do so but morally it was wrong.

sony could do more giving more choice to there closed system. particarly japan who makes the firmware who seem to have little care for the features on xbox live that many belive put xbox live over the top for being better service (cross game chat some party thing and some other things). however it is the service sony provides. you don't like it, but you want to continue getting all the good things sony offers pretty much tough.

anon wants the hardware sony aint going to give it to them without a fight but I dont see why they can't give it to them other than them losing costumers. however if they want the hardware they shouldn't get the game OS or anything that is copyright protected by sony and they shouldn't get access to PSN or any other sony services. this keeps the platforms ecosystem intact and should prevent piracy. gamers are happy, hardware owner should be happy, sony not so happy, they like to make money of the games not the hardware. the hardware owner wont be happy though they just lost everything they were demanding and the way I see it, it was never there to demand but they have the hardware and can do what they want with it.

If I am wrong please tell where and why. sorry for all the text. just reread I am difinately sony bias. I will post this to let you read my thoughts but I will probably edit it if I can find it in myself to be less bias but this is how I see it as of now.

http://www.afterdawn.com/news/article.cfm/2011/04/21/sony_should_pay_100_to_man_for_otheros_removal_consumer_board_says

"According to Consumer Board in Finland, Sony should pay up 100 euros to a console owner for OtherOS removal. The board said that the removal of OtherOS crippled console features that were present at the time of purchase and agreed that consumers should be compensated. Sony tried to point out that the user agreed to the PS3 EULA, but the consumer board noted that such agreements can't go around consumer laws."

Yeah, keep screwing around people and look what happens...

Hey, I am just fighting for your consumer rights...

''Should'' or ''must''?

on ps3 there was no piracy before jailbreak.

yeah, because you can't play pirated games without it being jailbroken... But before Geohot released the hack the PS3 had these babies 

no the bartenders would be the shops selling jailbreak.

there would be nothing wrong with geo hot drinking (hacking) but the problem occurs when he gets in his car (risking everyone else, in our case PSN users) and even though his intent isnt to run someone over (piracy, cheating), its still very likely to happen.

its a fact geohot knew that releasing jailbreak would lead to substantial levels of piracy and cheating and if you do not acknowledge that fact then you bare no credibility and therefore i dont want to debate it with you.

anyways if he was right, why did he back down despite having financial funds and support from the hacking community including anonymous? actually dont answer that because there is no real answer for that.... probably only a few excuses.

I'm impressed I never tought they would be able to take down PSN, next thing you know they'll be stealing our credit card number to show us how unprotected PSN is

Seriously? I keep hearing conspiracy theory crap like this, and it completely baffles me. Sony didn't want the ps3 jailbroken in order to prevent piracy and cheating. Geohot thought he couldn't be touched and got cocky, and so he released the code to the world. The moment he did, there was massive amounts of cheating across PSN; so, I don't see how Sony fighting to prevent this mess is unreasonable in ANY way. And I especially don't understand the connection between Sony's actions and your conspiracy theory bolded above. Sony's been making game consoles for what, 25 years now? Please explain the things they've done that lead you to your prediction.