The goal behind the fail0verflow PS3 hack (read more about it here) was always about bringing back Other Os and homebrew development to the PS3, according to the group that made the hack. And while the hack was an important step towards this goal, the next step has already been taken, with the release of new custom firmware for the PS3.
A user named KaKaRoTo has released a set of tools that allows the PS3's firmware to be modified, all made possible by fail0verflow's hack.
While modifications to the firmware still won't allow homebrew to run free on the system yet, but the first step has been taken, and there is no doubt that, with a programming community that's eager to see just what can be done on the PS3, it will only be a matter of time before this goal is reached.
As for the other goal that some believe in, to open up the PS3 to play backup/copied games (and also pirated games in the process), KaKaRoTo won't allow that, and many in the homebrew community hate piracy as much as Sony, because piracy gives their work a bad name, as in order for homebrew to exist without official support from Sony (ie. the PS3 needs to be hacked), piracy might just follow using the same hack.
And you can bet Sony won't be giving up so easily without a fight, although there is only a limited set of things Sony can do without ruining the entire platform (but don't be surprised if they do ruin it - DRM rootkit anyone?). Sony can recall the root key and issue a new one, but that could make existing games unplayable. Some kind of scanner that bans/disables PS3s detected to be using modified firmware would be made, but that's a declaration of war on the homebrew community as well. So stay tuned, because the war is just beginning.
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