I lost Linux on my PS3. Whoopy. Its definitely not the end of the world. In exchange I get another 12 months of low piracy and hacking on a PS3. I got the better end of that deal trust me.
My problem is that Sony made you choose between the two when it's their responsibility to provide both. I don't know why people accept OtherOS can't be implemented with restrictions against piracy or hacking just because Sony said so. In light of the fatally stupid security mistakes that have come out, it seems much more likely that Sony is just incredibly lazy on the part of actually trying to figure out how to make Linux/OtherOS secure.
The point I'm trying to make is that it's completely bull**** for Sony to present either security or Linux/OtherOS as mutually exclusive choices. Is Sony saying that it's technologically impossible to have a secure platform with Linux/OtherOS? If it's so absolutely impossible, it seems pretty retarded for Sony to have included it in the first place. I guess when you're trying to sell a $600 console, you don't worry about that stuff and it's easier just to advertise your console as a superior piece of hardware that "only does everything."
In my opinion, Sony has handled this issue in a completely short-sided manner. Linux gets comprised? Let's just remove this feature instead of trying to actually secure the console itself. Geohotz releases the keys? Let's sue him instead of actually working to fix the security issue of the PS3 itself. The fact that the recent hack revealed the idiocy of the PS3 and PSN security should be enlightening of how little effort Sony puts into actually securing the console. Unencrypted credit card information? Non-random security guys? It's clear Sony put the minimal effort in order to make as much profit as possible. In fact, I fee like part of Sony's overreaction to the PS3 hack has been a result of the fact that they knew it would reveal the piss-poor effort they had put into PS3 security.
You guys really think Sony exhausted all other possible options before removing Linux and OtherOS? You think they put in research and development into how they could save that functionality and secure the console. I highly doubt they would have put any such effort if it would have hurt their bottom line. Corporations will favor profit over consumer interests 99 out of 100 times. This would be fine if we lived in a true free market economy where we knew everything Sony was doing but we don't have the kind of perfect information that Adam Smith's ideal free market requires. Instead, we have a situation of extremely asymmetrical information on the part of the consumer and the corporation and thus the need for protection of consumer interest.
I don't see any reason why Sony should be let off the hook unless they somehow prove that Linux is fundamentally incompatible with a secure gaming console. Even then, they should have some culpability for being stupid and greedy enough to promise this in the first place if it's that fundamentally impossible. No matter which way slice it, Sony screwed up but it's the consumers who paid for their security and technological failures. That just doesn't sit right with me.