http://arstechnica.com/gaming/news/2010/03/hacker-vows-to-fight-sony-ps3-update-restore-linux-support.ars
The problem for Sony is that GeoHot is now threatening to release custom firmware for the system, which is quite the escalation from what was previously available from the hacking community. "I never intended to touch [custom firmware], but if that's how you want to play..." Hotz wrote on his blog. Sony may have done much more harm than good with its April 1 update.
http://geohotps3.blogspot.com/
"The PlayStation 3 is the only product I know that loses features throughout it's life cycle. Software PS2 emulation, SACD playback, and OtherOS support are all just software switches you can flip. It's unbelievable you would go and flip one, not just on new boxes you are shipping, but on tens of millions already in the field."
I may not be a fan of Geohot, but he's got a point about PS3 being the only product that loses features (even if it gains others) throughout it's life cycle.