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I hope the lawsuit succeeds and Sony learns a lesson.

The justification for removal of the functionality is absolutely ludicrous. It's wrong on so many levels I don't know where to start...

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edit

I thought that Sony never stated this was standard functionality. But it seems I was very wrong:

http://www.playstation.com/ps3-openplatform/index.html

So I must agree this is not fair...

But choosing forces you to lose something that you may have originally bought the console because of. Don't upgrade and you can't play any new games. Do upgrade and you lose Linux. Not really fair is it?

Actually, you can't play many existing games now, either -- some rely on a PSN connection, which you can't make without an updated console. So the claim that the removal of the feature is optional is a lie; either way, features which have been used to advertise the console have been removed.

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