lol because you never put them into the proper folder " PS3/UPDATE/PS3UPDAT.PUP " they all have to be capital letters. Don't tell me thats what you did because you didn't. It's not gonna read for the update if not dont correctly in the folders. You no reason to format your PS3.
Change the name of that .PUP file to PS3UPDAT.PUP Plug your USB into your PS3 and head to system update, then update via storage media Go through the process like a regular update