This might be so '2 weeks ago' but I've been away, oh well.
In a few short words: The PS3 has finally been hacked via a USB device!
Sure it can be possibly used for piracy, but let's not go into that topic. Instead read this nice intro into what an open PS3 can do for you (via Mod OP from Neogaf):
This USB stick is confirmed to boot the PS3 into some sort of service/debug mode, and while the package comes with a backup manager, the important thing is that the USB jigkick allows for unsigned code to be launched by retail PS3s.
This means that CFW for PS3 is now a possibility. People can write apps and boot them from this USB stick. Imagine a CFW where all region coding is disabled, one can use their PS3 as a PS2HDloader (if they have a BC unit), play your library of PSP games via PS3 and XBMC on PS3 is possible. It will also be possible to launch linux via this USBstick, and probably even launch old installations on post OtherOS killing firmware.
Ripping games to HDD is actually the least interesting thing about this.
Here is a video with a great explanation and demonstration:
Well there you have it. I love the region coding disabling option because I have a lot of R2 dvds I would love to play on my PS3.
There have been so many changes since the initial PS3 jailbreak. Sony sued and kept the item out of circulation for a time. People in China reversed engineered the Jailbreak dongle and started selling their versions. Sony then updated their firmware to block this device and people are working on a fix. Now, there is an open source jailbreak called PSGroove that uses either a usb type device or your own phone to hack the ps3.
From a Geek.com article on PSGroove:
It's called PSGroove, and is an open source solution which can be used with a USB stick you provide. That means it's free to get the software, there's no product to ship, and Sony would have to stop the sale of USB drives to block it.
The project is still in the early stages of development, but can already run unsigned code. ISO booting is disabled making it unusable for running copied games, but the keyword there is "disabled" meaning the functionality to do so is already there, it just needs to be re-enabled.
For more information on everything (where you can download, order, instructions) there is a very informative Neogaf thread.