This is how EULA works though, if you don't agree, you should be able to return it, full price, within 30 days. The idea here with EULA is that you don't buy games, you buy licenses to play games. Plenty of people don't know this though, and if you keep it past 30 days, it is assumed (in US law at least) that you agree with the terms, whether you know about it or not. Ignorance is never a proper excuse. You don't to sign something to give your consent when it comes to products. 

So with the EULA, you could be completely unaware that you actually "sign" a contract 30 days after purchase of a game. I'm assuming a similar thing is at work here. Please note, I don't know how this works in EU law, I just giving a point of reference based off of US law.

Actually, many of those ("shrinkwrap") EULAs were deemed invalid by European courts. And besides, we are not talking about software licences here.

Ah okay, I wasn't sure how that all paned out in EU courts. I know you're not talking about licenses, but I was just bringing up an instance where a consumer doesn't directly agree to something, but it's still valid, but only in the US it seems.

This. Stop crying over losing a feature nobody uses. YDL is so painfully slow it's not even worth using, one of the most unpleasant experiences I ever had.

isn't the PS3 "firmware" update actually software though?

It's classified on the site as System Software.

to get the file from the site, the EULA must be agreed to.

It also asks for acceptance of the EULA before allowing it to install on the PS3.

extract:

3. SERVICES AND UPDATES

From time to time, SCE may provide updates, upgrades or services to your PS3TM system to ensure it is functioning properly in accordance with SCE guidelines or provide you with new offerings. Some services may be provided automatically without notice when you are online, and others may be available to you through SCE's online network or authorized channels. Without limitation, services may include the provision of the latest update or download of new release that may include security patches, and new or revised settings and features which may prevent access to pirated games, or use of unauthorized hardware or software in connection with the PS3TM system. Some services may change your current settings, cause a loss of data or content, or cause some loss of functionality. It is recommended that you regularly back up any data on the hard disk that is of a type that can be backed up. Other services or content may be made available to you by third parties who may require you to accept their terms and conditions and privacy policy ("Third Party Agreement"). SCE may refer to or provide you with links to websites that third parties independently operate or maintain ("Linked Sites"). SCE and its affiliated companies do not control or direct Linked Sites, nor do SCE and its affiliated companies monitor, approve, endorse, warrant or sponsor any information, conclusions, recommendations, advertisement, products, services or content described on Linked Sites. You acknowledge and agree that SCE and its affiliated companies have no liability to you for the information on the Linked Sites. Your reliance on any such information is at your own risk, and you assume all responsibilities and consequences resulting from your reliance. Please see your user's manual for information on controlling access to Linked Sites via PS3TM system's parental control. Notwithstanding any provision of any terms and conditions, in the event of any conflict between this Agreement and the Third Party Agreement, this Agreement shall control as between you and SCE.

Again, let me make this clear. When you bought it, you purchased a device that could play Blu Ray discs, PS3 games and use Linux. Taking either of this away after the fact is a breach of contract.

I think Sony's legal team might have heard about that.

When I formatted my hard drive as NTFS, it removed the ability to install Linux on that drive too.

the bastards. I'll have to sue them now.

MS didn't even warn me about that.

sure I can partition after the fact but it's so inconvenient.

They might be trying to get away with it, yes.

I know I shouldn't even reply to this, but please explain how we can use Linux on PS3 after Sony removes the Other OS feature via an update that is mandatory to continue to use PSN, play new games and watch new Blu Ray discs?

you won't be able to.

too bad.

sucks a bit, but that's life.