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You see, they wanted all the benefits of being able to use OtherOS in their marketing. But they didn’t want you to actually use it!
Basically. In Sony’s case, they were clearly afraid of homebrew games, but I still can’t imagine any other rationale than what you said for killing the feature, especially as neutered as it was. It definitely taught me a lesson about buying products that can’t be kill switched after purchase. The US Air Force even built a cluster of 1700 PS3s that relied on this feature. I’m sure they weren’t routable to the internet to get updates though.