I think the big part was
"14. INDEMNITY
You agree to defend, indemnify and hold harmless SCEA, its affiliates, subsidiaries, officers and directors, shareholders, agents, employees and partners, and any other parties with whom SCEA may contract to provide the Sites, from and against any and all claims, actions, suits, costs, liabilities, judgments, obligations, losses, penalties, fines or forfeitures, expenses or damages (including reasonable legal fees and expenses) of whatsoever kind and nature imposed on, incurred by or asserted against SCEA arising out of
your User Generated Content; or
your breach or alleged breach of any representation, warranty, covenant or obligation pursuant to these Terms of Service, the Privacy Policy or the PSN ToSUA.
We reserve the right to take over the exclusive defense of any claim for which we are entitled to indemnification from you. In such event, you shall provide us with cooperation reasonably requested by us."
Basically saying if we agree to these terms and service we lose to right to claim or take SCEE to court. I'm all for custom firmware and all but against piracy but you have to give Sony some credit for going so tough on this issue, but it does show corruption where the big Multinational Corporations always get an advantage over the small guys