In the wake of PS3 unlock hacks released by Geohot and fail0verflow, Sony has felt it necessary to issue a statement warning users away from such activities. In a recent statement, the console maker made it clear that the use of these tools to run pirated content will result in a permanent PSN ban. This is a similar stance to that of Microsoft on Xbox piracy.
There is some fuzzy language in the Sony document, posted on the US and EU blogs. For instance, they say that "Consumers using circumvention devices or running unauthorized or pirated software" will be blocked from PSN services. This makes it sound like simply modding your console will result in a ban. We hope that Sony won't be that heavy-handed, but it's not impossible.
Sony is already on the warpath over this issue. The hacker that originally discovered the PS3 root key, George "Geohot" Hotz, is being sued by Sony for DMCA violations. While Sony is within its rights to pursue legal action, and to ban customers from its PSN service, we have to wonder if it is a good idea to do so.