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Mr Khan said:
LivingMetal said:

"...after he published an encryption key and software tools on his website..."

If it weren't for this, the situation wouldn't have gotten this far.  Blame Geohot, not Sony.

Which we've explained is interpretable as being within his legal rights of allowing consumers to pursue legal activities (that could in turn lead to illegal activities, but where's the burden of proof lie on that?). Sony's only compounding illegalities on top of illegalities

No they are NOT. You are making things up at this point. YOU CAN determine illegality based on the possible infraction that a product enables. Like I said before, you cannot sell silencers for handguns based on that simple fact. Because although you can make a case that a silencer is used for hunting, it is far too likely to be used in crime for them to be considered legal.

It is of the exact same essence of this case. 

If Sony can prove that cracking the system using Geohot's software will be used extensively for piracy or anything that can hurt their product's image or usability, then they have a case. I don't see what is so hard to understand here.