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Sony was asking for it in this case. I can understand why the ps3 slim had the feature discontinued but disabling the functionality on older consoles was severely overreaching. Especially since in the early ps3 days sony actively sold these machines as cheap ps3 devboxes so that developers could use the ps3 to become familiar with the underlying architecture.
Sony I understand encouraged the use of the playstation for acedemic research, hence Folding@home. This move by Sony may affect research as PS3s were being used for cheap supercomputing power.

http://www.ps3cluster.umassd.edu/ http://en.wikipedia.org/wiki/PlayStation_3_cluster

In fairness, those guys have little reason to upgrade to the latest firmware. At least Sony have reduced the temptation of playing some games to finish up the day at the office. ;-)
I think the vast majority of people who bought PS3s for linux-computer use are dual-booting home users.
As I said in another comment section about this I am happy with my ps3 and I have updated my ps3 completely as I use it for games and bluray, but not Other OS.

But this irks me that a company though fighting piracy or whatever other exploits they are trying to prevent was more important than their customers that they decided to remove existing and functional components from their system that had no risk for the users.