Earlier quoted context omitted.
(I'm sure I'll lose karma for explaining Sonys side, since some people just want to be mad) Linux support was not removed due to Geohot. It was a driver and business priority issue. Geohot just sealed the deal. Having worked there during the kerfuffle, I can confirm their reason was valid for not supporting Linux going forward. It was a non trivial effort and they wanted those engineers to make it support the new har…
My recollection is that the PS3/Linux thing was a failed tax dodge, because that meant you could classify the system as a general purpose computer instead of a game console. When the EU decided to categorize it as a game console anyway, they killed the Linux project.
I recall they offered a "Linux" kit with mouse/keyboard, network/HDD adapter (so limited for fat models only) and a VGA cable to use with a computer monitor with sync-on-green support...