PSX-Scene.org Mod Explains Real Reason Why PSN is Down
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The Sony PR people are going to shift the blame to the hackers for having a protocol and server so susceptible to privilege escalation. I don't agree with what the hackers have done, but in the end it will serve to only reenforce the belief that its OK, nay necessary, that end users are unable to mod a device they own. And before someone screams EULA, I'm talking about the opinion in the collective consciousness in general, not specific to the PS3.
Long story short, Sony doesn't understand security. This is the second time in less than a year that their security through obscurity techniques have landed them with a mess.