The limitations of sky3ds are known by now, I mean you can compare what k3ds does to all the available 3ds flashcards out there and can CLEARLY see what design its cloning.
As for sky3ds screwing there customers on firmware updates....again its a hardware limitation to there design. Yeah they probably knew that it was going to happen sooner or later, so does every other flash card dev team (not much, only 2 dev teams so far). I'm sure sky will have to go back to the drawing board on this one. They were pretty smart in disguising there hardware because no one has been able to identify the chip in the card.