I think they did it because Sony started locking down their system and removing features, making themselves a big juicey target. Sure it’s going to spill over but from what I’ve been reading those involved have (wisely) been very vocal about how against that sort of stuff they are.
Sony is also diging themselves deeper. Their reaction thus far has been more underhanded stuff like depositing money into geohotz paypal then claiming in court filings that he was earning/asking for money for his work. I wouldn’t be surprised if they also leaked the rumour that they’d kill switch PS3s that were hacked. That sort of stuff just encourages the bad people to get worse and the good people to stand up and defend the legitimate use ever louder.
And still, much under the radar we have cheating which is looking much like it’ll depend on PSN blocking online to hacked firmwares or machines with homebrew running.