PS3 finally properly hacked?

It probably means linux & homebrew games (games that can be developed without the often expensive and exclusive commercial, licensed SDKs required to develop for consoles) are coming soon for PS3. Maybe a port of Boxee (like XBMC for original Xbox) as well, unless Sony is wise enough to officially partner with Boxee...

Edit: yes, there is currently "linux" for ps3 but AFAIK it has limited access to HW, done on purpose by Sony. Running a true native linux would unlock the full capability of the hardware to the OS.

Unless you control hypervisor you can't see what games are doing in their virtual machines. Once you do - you can, and that means you can start cracking their anti-piracy code etc.

Sony advertised Linux support on the older PS3 (the new slim model removed this feature). But even then there was no access to the GPU (Sony was afraid people would make homebrew games). This made is impossible to get even things like video playback working acceptably.

With the hypervisor out of the picture, a real, uncrippled Linux system is possible on the PS3.