Sounds like Sony might get there asses handed to them if they aren't careful.
Although it is true that circumventing the security measures and releasing copyrighted intellectual property is Illegal, and if inside the US there is not much to be done to win a legal case, especially since I am sure (not a PS3 owner so cannot verify) that in the TOS when you signup for an account, it most likely states something to that point. Not to mention sony is a multi billion dollar corporation and is sure to have some of the greatest legal minds working against George Hotz.
Time shall tell.