I very rarely post in forums but this one got my attention. I disagree with a lot of the post so far:
1) Sony MAY react to this. They have a history of suing people and being all 'round ###holes.
2) This may not be as major a problem as people are making out for Sony. The majority of people who belong to the "homebrew" scene wouldn't have paid for the psx downloads anyway, so people using their own iso's isn't an actual loss of profit. Neither is this likely to be popular with newcomers due to the new MB's etc.
3) With regard to people saying Sony should do this and that with security, shut up. You don't know jack. Since Sony made fundamental flaws at the beginning of the PSP's life, coupled with the virtual imposibility of making anything truly secure through software (especially when it can be RE'd) they will never kill off the scene. They will merely make it hard for more people to join the scene i.e. downgrading, new mb's etc.
4) Seriously, there is so much good (and free) advice floating around the net for Sony, and somehow they manage to consistenly mess things up, treat customers like mugs, fail to deliver on promises etc. If Sony carry on like this for more than a year (granted thats quite a while) we really could be looking at the death of this company. I can't remember such a large companies fall from grace on the scale of Sony. Everything they touch at the moment turns to s###.
5) I think Sony will likely offer psx downloads etc from a PC in the near future, and it was always their intention. I think the only reason they didn't straight away was to boost PS3 sales. This was an absolute disgrace on their part...along with the racist adverts, fake utube videos etc.
6) Final rant...how can a company be SOOO arrogant in the light of such terrible performance in recent years. Some of the comments from their execs over the past 6 months defy belief. Sony haven't done anything good in recent years...even the PS2 was the worst of the 3 consoles...it just had a massive following from the PS1 which lead to developers supporting the platform. I really think people are coming to the end of their tether with Sony. I used to love this company, but now I genuinely dislike everything they stand for.