I think what he's getting at is they aren't forcing you to update it and taking it off on their own.  What you are saying is they are forcing you to choose which is true but not the same as forcing you to take it off. 

Thats my point, for anyone wanting the Other OS feature to remain yet still use their PS3 for gaming in the future they're being forced to choose between the two.  In the case you're in that position then you'll eventually get games that will not play which is disgraceful for a games console sold with this feature. 

What annoys me, is the number of users in this thread playing it down and acting like we should be happy Sony are shafting us the consumer.  If you're not bothered about this feature then just don't post in these threads and let them die off, people keep trying to tell people its not an issue, well it might not for them but for some of us this is an issue. 

For some people the issue is not necessarily that they always use this feature, the point is they always had the ability to if they wanted before and now they'll not be able to, it's as much the principal of the matter than anything else.

Can I just sumarise what people are saying

It is not illegal
It is immoral
It isn't important to the vast majority of people, but it is to a few

These three statements are not contradictory, there is nothing to argue about here people

there not breaking any laws as they are not telling u that u hav to do it. u do hav the chice as to weather or not its happends. also u cant say that not letting u yous psn or online is illegal cos they do that for every update

Whether they are breaking any law, we'll just have to wait and see the result of the class action lawsuit.
There must be at least 1 lawyer somewhere that'd want a piece of Sony's pie.

At this point, I think it's useless to argue because nobody will budge on what they already think of it.

I'm a pretty big Sony fanboy but also a Linux fanboy and I'm upset. I am not upgrading my system. I don't care about PSN that much, but as people have pointed out I have no "right" to that. Once I purchase a game, however, that requires an update to 3.21 then I will have been "harmed" and will join any class action or seek legal help regarding it. (You have to demonstrate actual harm before you can sue in civil court.) I don't understand why so many people are supportive of Sony removing a feature. Once you allow them to do that they can remove anything. Why not stop it from playing blu-ray because they want you to buy their hot new player? Stand up for principles. You all paid for a system that could run Linux, and now they've taken that away from you. What's next?

Another one of these fail threads, and not because the OP is wrong.

ToS/EULA CANNOT contract outside the law. Once there's a conflict between the law and ToS, the ToS means nothing.

Someone said this before, this is a "bait-and-switch". You were advertised a product that has a set of features, and then the use of PSN AND Other OS. You now have a product (if you have the phat) that has that same first "set of features" I mentioned, but then the use of PSN OR the Other OS. In either case, you are losing a feature.

What it comes down to is whether it was directly advertised that you would have BOTH features. If it was, this is false advertisement and will easily be taken to court, Sony will be sued, and maybe forced to re-implement the Other OS option.

Though, once games start releasing that require 3.21+, it won't matter if they advertised PSN or not.

Again, I've said this before, this update is "optional" just like turning on the PS3 is optional. Or the same way each and every thing you do is optional. You don't HAVE to do anything.

Great. Sue them (or whatever you're meant to do, don't know if it's civil or criminal law) and win, Sony'll feel the pain if you win and make it a class action.

But not suing yourself and asking others to be outraged is stupid.

if the game require's 3.21

it will be on the disc. that once again you as the consumer would have to choose to play your game or not update and not play it.

yes that sucks, and it bite's that you have to choose between linux or the ability to play the game's that require 3.21 or higher.

the fact that the firmware update is included with the game , mean's exactly that you could play the game if you wanted too, if there was no firmware that would indeed be a problem. but since there is, it's not.

Yes I think making the choice to loose Linux was a crappy deal, but it's because of a few hacker's that this is even a issue. the current Hack relies on LINUX

so Sony took a step in putting up a 

deterrent

something that deters: a deterrent to crime.

or

retaliate strongly enough to deter an enemy from attacking.

remember the HACK that geohot and other's use relies on Linux. So if your going to Hack than there is a result's to Hacking and other's may infact pay for it. and yet Hacker's Like Geohot did it anyway. Linux allowed you to program right to the Cell processor. Geohot and other's did not have to MOD CHIP their PS3's inorder to break the security and encryption just to capture the security data.

they even admitted that it could capture security data from game's.

the fact that they already had access to function's for Homebrew through Linux, they knew this anyway they went on ahead and did what they did.

Sony would be more liable to their share holder's and consumer's if they did not do a thing to at least

" retaliate strongly enough to deter an enemy from attacking."

which they have, since the Hack that

Geohot and other's have right now RELIES ON LINUX. mean's if they want to use it they still can , but not only do they suffer for it So will you because of their action's. the minority ruined it for the majority.

at least there is still one area open for homebrew for the PS3 and that's BD-Java.

Like I said I think it's a raw deal, but I understand why they had to do it. and if any law suit does go forward I am very certain due to i have a few friends with Law degree's that have kept up with this, and geohot better be thankful he's not in the UK right now because

Computer Misuse Act 1990

he would most likely be spending some time in jail.

This. 'Nuff said.