they wont be able to play online and as soon as they put an post GT5 game in and it does its install, boom good bye games. I dont know if it detects and bricks your PS3 but they have the anti jailbreak patch on all the new games now 

From what I heard, they had similar patches with the PSP and it was only a couple days/weeks before hackers got around it ...

people always exaggerate

It all started with a guy name geohot...

Same with any system.  Any update to firmware they do to try and prevent pirated games will get hacked within a day or two (possibly longer depending on the system).  I have a friend that hacks Wii (I don't support him) and after the last update it was on sites that it wasn't hacked yet even though he was able to hack Wiis basically a day or so after the update release (2 weeks before the people saying it wasn't hackable yet on the sites he visits).

AFAIK it's possible to just downgrade the PS3 again to previous GT5 firmware, so nothing happens besides not being able to play GT5 and the very few games with the new firmware update on it.... yet.

...300 games. They can't be all PS3 games, but still even if you had 1 TB hardrive, every game would have to be a minimum of  4 GB...Don't think that's possible, maybe a bunch of PSOne games???

If you make the assumption that 1/4 to 1/2 of the games are PSN games (which are significantly smaller than disc based PS3 games) 1TB should be tons of space ...

Definetely depends on the games yes. But still there must not be very many PS3 games, they can be anywhere from 15 GB to 40 GB.

If it wasn't for him quiting, the real hackers would have never bothered to try to hack the PS3!