Surprised nobody posted it here yet (okay EP was down...) but the guys at the 27th annual Chaos Communication Conference cracked the PS3 open with no possible fix. They have gotten the Sony private key which normally only the Sony HQ knows. That means wee can sign homebrew and it will be seen as 100% legit Sony software and will run on ANY PS3 with ANY Firmware.

From what I read this can't be fixed by a firmware update and also a hardware change can't help because any change in the private key would make all existing PS3 software useless.

I don't have the know how to understand it in detail, but from what I got: The PS3 doesn't has the private key stored, only the Sony guys have it, however due to a fail in the encryption scheme, the guys were able to mathematically compute the key. Basically a part of the  equation should always return a random number. Some Sony coder messed up and this equation always returns "4"

I will repeat myself:
That means wee can sign homebrew and it will be seen as 100% legit Sony software and will run on ANY PS3 with ANY Firmware.

Source: Engadget

Video of the conference:





Skip to 33 minutes for the good stuff^^

And oh yeah, they only started gaining interest in it when OtherOS was removed, or so I heard
The comment at the Youtube video speaks truth... Protip: Don't piss off Linux hackers