the first recorded legal action on this matter was in europe, but the suit was filed against amazon.com utilizing a european law (Directive 1999/44/EC). so let's not be too quick to complain about america's legal trigger finger. and no im not an american, nor do i have a ps3. this is strictly a legal issue involving consumer rights and the nature of product ownership and personal property.
despite the company staying within their terms & conditions, the disabling of a feature that was advertised as a selling point is without doubt a matter for the courts and should not be accepted without protest. it genuinely devalues the product. the mere mention that it is optional is nonsensical as to refuse the update will disable access to the playstation online network. i'll explain why:
once money changes hands, the sold item becomes personal property and while the playstation online network is a free service, it is still intrinsic to the value of the product. to make the update 'optional' only by forbidding access to the playstation network upon refusal gives sony an unacceptable amount of leverage over the consumer's behavior after the product has been sold to the consumer and is rightfully theirs.
personal property issues come into play here, and despite the terms and conditions giving sony the practical right to do this, there still stands the question as to whether the terms and conditions themselves are a violation of a consumer's right to pay for and own a product in its entirety.
understand this; if all ps3s were being rented from sony, i would understand and accept this move. ..but to advertise and sell the item then force the consumer to choose between online access or the OS function is too much control over the product after it has been sold.
to conclude all this windbaggery, this move by sony is something the courts should look at and decide whether the affected owners should be refunded for the value of the lost functionality. i think the company has a right to do this due to their terms and conditions, but they must also accept that the limitation of their product after the point of sale is a devaluation of the product and demands monetary compensation or a retraction of the update itself.
this could get very expensive for Sony if the lawyers on our side are worth their salt. what sony does next comes down to whether they value brand reputation and consumer opinion above the potential lost revenue that the OS feature presents via piracy.