Downgrade has still yet to be proven. Psjailbreak team has destroyed their own reputation by promising a jailbreak for 3.50 ever since it came out and did not deliver. Videos are not reliable proofs; we have seen our share of fakes on gbatemp over the years lol
About the PSJailbreak Team, they promised that we could jailbreak 3.50+, but it was a false promise.
We can't jailbreak it to play 3.50+ games, we can only downgrade to 3.41 to jailbreak 3.41, and we still can't play 3.50+ games.
If you see jailbroken PS3 with 3.50 firmware, it's because we can replace the number manually in the reported installed firmware version, so the console and games think you are already up to date and won't ask you to update.
Though, the real 3.50 firmware contains new encrypting key that 3.41 don't have.
If you are on 3.41 (even if you fake the 3.50 in memory), you still can't decrypt games which were compiled with a 3.50 SDK.
Two games requiring 3.50 are working because :
- Medal of Honor : They compiled the game with 3.41 but made the game ask for 3.50
Solution : Editing the param.sfo to ask for 3.41 is enough to fool the game.
- I don't remember the name of the second game : They compiled the game with 3.50, and thus having the boot crypted with the new key. The 3.41 firmware can't decrypt the boot file.
Solution : download the update from PSN server, the update is compiled using 3.41 SDK !
The 3.41 firmware can now read the new updated boot file
Cyan hit everything right on the nail with his post.
It could be possible that the jailbreak team could release another modded update file to exclude blocking of the exploit from 3.42 and 3.50 while keeping all other current 3.50 functions. However, in order to update to this modded PUP, you would have to downgrade which is possible provided by the jailbreak team.
Unless you are apart of the Jailbreak team, (I'm not even related to the team so I am only speculating), we really can't say what they have for the future other than prepare to spend shit loads of money.