I find it's sad that Sony decided to remove this feature, but understandable. If this leads to game piracy, Sony will loose out on game income, paired with selling millions of console at a loss. I would of done the same thing. From the US Playstation Blog : ''will help ensure that PS3 owners will continue to have access to the broad range of gaming and entertainment content from SCE and its content partners'' From reading this , probably some partners demanded the feature be removed to protect their investments. Because piracy on the PS3 doesn't only affect Sony's pocket but companies that make games and movies. In my opinion, the only way Sony could get away without hangrying too much the people that use the otheros feature, would be to remove the feature, but implement a Linux OS, that they helped develop. So people would only have the flavor of Linux Sony decides. But they could make people happy by allowing the full power of the PS3 ( all the SPU's , the GPU , etc.) to bu used fully, with some sort of ReadyBoost feature like in Microsoft OS, to help with the low amount of ram the system as. Like this Sony takes care of the piracy problem , Linux on the ps3 users are pleased, and it defeats the publicaly stated saying of several, that they're hacking the PS3 to take full advantge of the hardware on the otheros side.
Just my tought.