It's rather ironic, really...
My elder brother is a programmer. He has a ball programming on the PS3 - even though the graphics hardware is off-limits to the Linux installation. However, this has meant he's unable to update his firmware because that will render his console useless for that purpose. This, by extension, means he can never buy another game for it because of the included updates - effectively cutting off the revenue source for Sony, since they have to sell the hardware at a loss. Further, he can't just buy a new console because the slim machines don't have PS2 compatibility.
With something like this USB device, he can purchase a new, slim console (not a profit to Sony, but still a sale), use the stick and install Linux on it for use strictly as a programming device. He can then update his fat console for gaming purposes so he can maintain his PS2 compatibility, meaning purchasing more games meaning more profit for Sony.
Sure, there are pirates. But there are also legimiate uses. It's the same people that get this thing banned that got Linux on PS3 banned in the first place.