What's funny is that if Sony hadn't removed OtherOS none of this would have happened :p

I don't believe that one bit.

Team 0verflow didn't start till Sony removed linux because they were upset about it. Ge0hot would have continued with the linux hack that was complicated and probably wouldn't have found the master key to the PS3 and PSP. Sony's removal escalated stuff way more then they could handle... Sony really brought this unto themselves

Eventually, everything gets hacked. It would have played out the same way sooner or later. 

To lighten up the mood a little, check at this image i saw:

For those of you who don't know, the defendants on the right are Geohot and Marcan.

Feed them to the sharks!

Apparently its a restraining order...Sony has no case against overflow guys... they hacked nothing, but used simple algebra to reveal sony's epic fail. But Gehotz may be in trouble for extorsion as he suggested he wants sony to hire him to prevent this in the future.

A brief recap:

Sony sued Bleemcast and won...a tool which allowed a dying Dreamcast to run PS1 games and anctually improve resolution and framerate of the games. This would have been awesome but no...

Then they they sued Lik-Sang for selling Japanese PSPs to EU and won...shut them down. That site was awesome as they had every kickass arcade stick, controller and other gadgets.

Now this...

To be honest, their childish behaviour really makes me want to pirate their products.

I am not an expert at this because I haven't done it.  But from my understanding, what GeoHot did has nothing to do with distributing your private keys over the internet.  He enables you to find your own private key and then your able to do with it what you want.  Meaning opening up your own PS3 for homebrew.  I am fairly certain that your key will not work in any other PS3 thats made so there is no way they can impersonate you or anyone else (at this point in time).    So your analogy is skewed in the wrong direction.

Actually I don't think Sony is the bad guy.  They are trying to protect their "baby" and I can understand them scrambling to do so.  I just don't think that they went about it in the right way.

1st)  They should have never taken out the Linux OS part out of the PS3.  This enabled many many more people on the Linux front to join forces to crack the console to get this feature back.  Sony did this to themselves.  The possible hacking of the system would have taken a lot longer if they had left the feature intact.  Because most people wouldn't have gotten together to break it (it wasn't needed).  The linux community is very very proactive, when they think they have been wronged they will stop at nothing until they right the ship.

2nd)  Suing the people involved will not stop anyone else from doing the same next gen.  Because this entire mess will have been forgotten about by the next group of hackers that are waiting in line.  Just look back at all of the other hackers who have came before and been scape goated or ruined.  It didn't stop GeoHot or any of the other guys working on this.  And it won't stop anything in the future.  All they are doing is ruining a persons life for a while.  He may even be offered a job after everything is played out by MS, or Nintendo in the future (after everything has played out and he has served his time if he even has too).   It would be so funny if MS loaned a few of their lawyers out to help defend this guy.  I would laugh so damnd hard.

3rd) Sony should have went after the people who are actually pirating the software.  Other companies have legions of people trying to track down and catch people who torrent their software.  And I think Sony would have gotten more bang for their buck doing the same thing as everyone else.  Hit the end user ( torrent site downloaders) with something that might actually win in court instead of getting the guy who pushed the button for turning on the flood gates.

Maybe I am just jaded a bit.  But I don't believe that the Pirating will be as bad as most here think it will be.  Its been with the 360 pretty much since the start and last I checked the 360 has the best attach ratio of any of the 3 console makers.

The difference being that the ones they sued and won, they were actually profiting from their activity.  I don't see where Geohot has made a dime from this.  And I don't know if they can get Geohot for extorsion if he were simply asking them for a job.  He probably said that I know how to get the keys and I can help you stop it etc.. if you give me a job.  They said no and he said ok thank you.  The rest is history.