I really don't get a lot of the backlash against Sony on this. For a site that is based primarily on sales statistics including software, Im a bit surprised how many people are surprised about Sony's actions. There is a lot of history to take in, but up until the last 2-3 years of PS3, Sony has been taking it in the teeth for years. Is this their fault due to bad marketing, arrogance, I would wager exactly Yes.
Now you have something that totally circumvents all the security you placed on your system. Years of convincing giant corps like Activision, Disney, EA that their content is safe on your machine, you now have a ton of explaining to do. Despite how severe the situation is, you have to take action very directly and effectively. If this means going at hackers and such, just to safe face to all the people that feed you on a daily basis, you have to do it. Do they do it at a cost of public face and understanding, of course. If you make the unpopular decision to wipe out Other OS, im sure they do a statistical analysis and realize that 2-3% of their customers utilize this and have to make the unpopular decision to kill it. They consult legal teams before any decision like this. This lawsuit was a non-issue from the beginning.
The thing is this, if any company losses control of their IP or their livelihood is at risk, they will make decision help preserve their company. It dosnt matter if Sony makes 100billion yen, or if its some small company that sells 2-3 million pieces of hardware. If their hardware takes a hit like this, they may not recover from this. Sony just so happens to have a lot of cash, but do gamers really win if they can no longer fund devs?
The really lame thing is that Ive followed this since the beginning and everyone bleeds the fact that this inst a piracy thing, its all about the homebrew. Go look at any PSX related hacking site. Homebrew apps are produced all the time, but nobody responds to these. The day a patch is created to allow Portal 2 to work with backup managers are the big sellers of the day. The same 2-3 percent of the folks that used Linux with OtherOS, are the same 2-3 percent that use their CFW PS3 to use Showtime or play NeoTanks. The other 97-98 percent want free shit.