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Exactly, when the hacking involves tampering with the online capabilities of the PS3 and homebrew "cheating - hacking" programs can affect information of other users, then it doesn't sound legal. Also there are is a legal agreement when you register on to the PSN network.

Its a lot different than previous generation consoles. Also there is no reason for people to complain that they cannot install whatever they want on their ps3. When a PS3 is sold, its capabilities and 'freedom' are stated and known. If someone does not like what it offers then the solution is not to pay someone to hack it but buy something else, for example a PC which is an open platform.

One last thing, Gehot states that his purpose is to enable users to run their homebrew programs on their PS3's and that his firmware is not supporting pirated games. Then why did he release the PS3 root key to everyone?