Linux support was not removed due to Geohot. It was a driver and business priority issue. Geohot just sealed the deal.
Having worked there during the kerfuffle, I can confirm their reason was valid for not supporting Linux going forward. It was a non trivial effort and they wanted those engineers to make it support the new hardware turns. It was a company wide goal to hit break even at retail pricing at that time (Sony was amazing at running hardware coat forecasting internally and iirc hit their 7 year Target by a week). This required the new hardware. So they dropped Linux. That part is real.
Then they effed up by not messaging it well and by dropping promised back support.
And then a bunch of the community responded as petulant children and attacked sonys main business and released products that allowed others to infringe Sony and other game studios property with impunity. These actions killed any chance Sony would engage with this community for the next decade or so.
Sony was also backed into a corner technically as I recall as the thing hot hacked (by realizing it was a null crypto key on the one processor), and thus allowed Linux was also the thing that did the drm. Sony had to choose between another year or so of drm or Linux support.
As in many cases not parties are at fault. Contracts can and are broken. Sony paid multiple prices for it. So did the Linux/hacker community.