I don't agree with this either. I understand why Sony eliminated the OtherOS feature, but what about the people who used it for legitimate reasons? Sony is threatening PS3 gamers with perma-bans if they don’t download the firmware update. That is downright wrong.
This update also contradicts their, “It Does Everything” mantra for the PS3. It used to do everything until now. It was a game console, Blue-ray player, AND a computer for a lot of people, but the firmware update turned it into a regular game console that plays movies. Yes, they have every right to protect their intellectual properties, but you can’t make me believe that eliminating a system feature was the only way of resolving the problem.