This is just terrible news. Good luck to sony and game devs finding new programmers to code SPU's now.
I doubt most gaming companies were using the OtherOS feature in order to learn how to program on the PS3, they hopefully have dev kits.
Granted, some things can only be done on the devkit, like access to the graphics card and the Sony graphics API, but doing compiler work or code that targets the SPUs is simply done better from Unix than with the native devkit options.