PSJailbreak splayed wide the PS3's security model, now PSGroove has arrived calling itself the "open source PSjailbreak." The code must first be downloaded and installed onto a $30ish AT90USBkey or a $25ish Teensy++ USB development board. After that, homebrew enthusiasts can then execute unsigned third-party apps and games on their PS3. At the moment, the ability to boot ISO files (read: pirated or "backup" games) is temporarily disabled. But we're sure that some of the internet's more nefarious types will find their way around that. Cat, welcome to the world outside of the bag.
[Thanks to everyone who sent this in]