Ah, sweet, sweet victory for the homebrew scene (and pirates). Firmware 1.10 and 1.11 have both been cracked allowing the Playstation 3 to boot 'backups' of Blu-Ray titles. SCE naturally loathes whats happening and are planning to go as far as suing people who crack the Playstation 3 firmware.
Dave Karraker of SCE says that "the best we can do as a company is to make our security that much stronger and aggressively pursue legal action against anyone caught trying to use an exploit in an illegal manner".
Of course he didn't mention just what the definition of 'illegal' is in his world. Sony has tried and failed to stop the PSP homebrew scene (and pirates) from cracking the PSP firmware, perhaps it's only a matter of time before Playstation 3 owners will enjoy the same freedoms with their hardware.
Just a point of mention, booting games does not mean playing games, the games boot but they don't play, obviously this is a minor technicality that will eventually be solved.