but I remember that being part of the reason why the
'Other OS' feature was removed from the PS3 -
Places/People were buying them up and running Linux on
them because they were such a good deal for the hardware.
Wait, really? The PS3 was outclassed by generic PC hardware pretty quickly, and wasn't much faster than a netbook unless you were writing some seriously multithreaded or PS3 GPU-specific code. I never heard of many people buying them to run Linux and I don't remember any prominent open-source projects that targeted the PS3.The real danger (for Sony) in opening up their consoles is the risk of piracy. That's a huge attack vector for hackers looking to defeat a console's copy protection scheme(s).
Sony's biggest nightmare is a world where teenagers can easily copy games because, as you say, that's where the real money is.