Welcome to last decade, when corporations gutted "fair use" laws, to pave the way to saying you did not actually own dvds, cds, and games you bought, but that you just are borrowing a license, and therefore you have no right to make a personal copy or do anything with them. or reincode movies you own if you move to a different region so they work on that regions dvd players etc, nope you are required to burn your dvds, cds and games and rebuy your whole library.
Where was all this outrage when this was going on? There is a more valid argument that i should be able to buy a barney dvd for my kids, make a backup copy for them to view since you know kids like to color throw break dvds given half a chance but the gitted laws say that is illegal and i should just give them the retail dvd and pay to have it replaced when something goes wrong. Same thing with games, you used to be able to make a personal backup copy that was all good under fair use, i think it even still held for vhs and cassettes.
This is bigger than some random geek that hacked a ps3 vs the evil corp sony, this is a case that will determine if you in fact own or do not own your console and have the right to do with it what you want, that includes smash it with a hammer, throw it in the bathtub, or reverse engineer it. Those are the stakes here.
Sony does seem to be going overboard in its scope, but if the judge allowed it i think it is safe to assume that they showed the judge something that seemed to indicate that something was going on despite his claims, it sure seems like they would have had to to to just allow them to go digging thru all his paypal records.
This case is far more interesting and important tho to be flaming each other over. This case could determine your rights on your wii or xbox or ps3 for decades to come.