http://lists.ozlabs.org/pipermail/cbe-oss-dev/2009-August/00...
Allowing people to opt out of the firmware update isn't as nice as it sounds, since you can't have a damaged PS3 serviced without getting it updated to the latest firmware. A few PS3 devs I follow on twitter have already discussed buying extra 'fat' PS3s to use as replacements in case their current ones die.
Kind of a short-sighted decision, since a lot of people who do development on PS3 software use this feature - getting a real devkit for use at home isn't particularly easy, and PS3 linux lets you do a lot of Cell hacking on inexpensive hardware.