This is old. Here is the same pastie, but posted on February 16, 2011 http://pastie.org/private/97oth9v5tspkiztwwdmnga

They aren't talking about the PSN Hack that brought down the network this time, they are going back and forth about how PSN stores the user's CC information in plain text on the console and that a shady/grey custom firmware has the potential to skim that information off the hardware and onto a bad guy's server.

The only slightly frightening thing about this is how they allude to the idea that this plain text CC information and security codes are transmitted over plain text, but that information is false. All transactions done between your PS3 console and the PSN network were done over SSL.