If Sony doesn't do something to stop this device they can pretty much kiss their developer support goodbye. The same thing happened to PSP and the developers abandoned ship. The system was kept on life support by homebrew, metal gear and monster hunter.
Now the same thing is happening to the PS3, only its much worse this time because PS3 development costs are much higher than they are on other consoles and PC. (For two reasons, difficulty of making PS3 games and cost of the Bluray format.)
Its PSP all over again. Fuck it, this is the PS3 Apocalypse!!!
APOCALYPS3 NAO!