Okay, in an effort to eliminate rampant stupidity, I just went and called my lawyer to discuss this issue. Here is what he has to say:
Section 301 of the Trade Act of 1974 is the principal U.S. statute for identifying foreign trade barriers due to inadequate intellectual property protection. The 1988 Omnibus Trade and Competitiveness Act strengthened Section 301 by creating Special 301 provisions, which require the U.S. Trade Representative (USTR) to conduct an annual review of foreign countries? intellectual property policies and practices.
Why and how this is relevant:
Special 301 provisions are the only accepted INTERNATIONAL regulations governing how software is legally protected. What they currently assert is that the consumer DOES NOT OWN THE SOFTWARE THEY PURCHASE. What they own is the right to USE the software, and the distribution of that right is what they have purchased. This is why it is illegal to back up copies of your software and distribute them for free/profit, seeing as the developer of the software still owns said software and thus are the only ones who retain the right to do that. You ARE allowed to back up the software for your own personal use, as not being able to do so would restrict your right as a consumer to use what you have purchased. Some developers go further and state how many times you can back up your product, and some go even further and physically limit the number of times the data on an optical media can be altered or copied. For an ingenious example of this, Starbucks does this with their SBUX CDs that they play in their stores by putting a little line of code in the disc that is an expiration date; after the certain date, which is verified on the internal clock of the proprietary player, the disc will no longer play, even though the format of the disc cannot be played in consumer-level disc readers.
Therefore it is legal for any developer to change their software in any way at any time with or without notice as they still own the software, and the consumers continued use of it is an implied contract in perpetuity of that understanding. Further,
a software developer in no event shall be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of software, documents, provision of or failure to provide services or information, updates to any software or services, or information available from the services.
That's the straight legalese that most developers quote directly in their terms of use contracts. This is international law, not local or national. What all that means is that not only can Sony do exactly what they did, but they are specifically protected from any recourse because of it.
WHAT IS ILLEGAL ARE THE FOLLOWING:
As far as false advertising, the two branches that this issue may fall under are considered "Manipulation of Standards," [in defining what OS may be used for PS3 operation] or "Undefined Terms." [Regarding the longevity of availability of alternate OS] The Federal Trade Commission has two things to say:
The definition of false advertising is "means of advertisement other than labeling, which is misleading in a material respect; and in determining whether an advertisement is misleading, there shall be taken into account (among other things) not only representations made or suggested by statement, word, design, device, sound, or any combination thereof, but also the extent to which the advertisement fails to reveal facts material in the light of such representations or material with respect to consequences which may result from the use of the commodity to which the advertisement relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual."
And that advertising after the fact can only be considered false if "there is a change in a product or service and there is no corresponding change to any representation made by statement, word, design, device, sound, or any combination thereof, and there exists a current marketing device, whether statement, word, design, device, sound, or any combination thereof that attempts to sell aforementioned product or service under the negated terms due to said change in product or service."
So, unless Sony is actively advertising that the PS3 can still have another OS and is using it as a selling point, it is not false advertising. Furthermore, it is the sole responsibility of the retail outlet to make sure that their advertisement material is current, not the maker of the product or service, and the maker of said product or service are not liable in any way if they don't. [That's why AMAZON partially refunded that dude's money, and not Sony]
What is also illegal is the developer making changes to the HARDWARE under any circumstances other than permissory. This change that Sony has made makes no changes to HARDWARE, only SOFTWARE. If a firmware update caused a green light to turn blue, that would be a hardware change; of the PS3, the only part of it you actually own is the nuts and bolts itself, same with any PC or phone, or what have you...thus it is the only part of the product that you can claim any kind of legal protection for. If the PS3 overheated due to defect and set your house on fire, Sony could be liable for that...but not if the software made it happen, only if some part of the hardware itself was defunct.
There. Boom. Done.
Whether it is all MORAL is an entirely different question. If you don't like it, stop deceiving yourself into thinking the only power you have in corporate society is in your wallet, seeing as theirs are much bigger than yours. The only power you have is in the vote...of representatives who will adequately voice your concerns at assembly when legislation is made, and in first-person voting when the legislative opportunities come to your community. And guess what? If more people vote the other way than yours, the other way will be what is adopted; that's the point of a democratic government. You can't have sour grapes just because more people disagree than agree with your moral philosophy...just make it a point to educate them to make better decisions.