I've read just about every single thread/article I could find. If anything, they answer opinions and not known facts.
Note: VERY NOOB QUESTIONS, which also means they are asked a lot. So I thought for my benefit and the benefit of others, I would post these questions.
So, my questions are:
1)Sony does have the right to ban your account from PSN, I know that, but what about the console?
2)Has anyone been banned on PSN for CFW yet?
3)Is it known if Sony can or cannot detect the use of a CFW? I know GeoHot just edited 1 file, but couldn't they just scan that file? Also, just read the CFW is signed on Sony's own code. This question still applies though 
4)They cannot do anything to CFW users(or any PS3 user for that matter) hardware wise (ie: bricking consoles), correct?
5)It is expected that when a new OFW comes out, it's CFW version can be made in a matter of seconds, correct?
6)If an error is done while installing the CFW or a homebrew app, and it bricks your console, can a format of HDD fix it? if not, can a new HDD fix it?
7)By installing CFW, is ANYTHING (other than the firmware, of course) changed on the PS3? If so, what is?
More questions sure to pop up. Trust me, I feel horrible posting this, I did search this site and others. But please know that my knowledge on technology, on a scale from 1-10 , is : PC-8.5 TV-7.5 PS3- 5.5 (when compared to some users on these forums)
1) They can, they have total acess.
2) Search the forums, ask the shoutbox. I haven't heard of anyone being banned.
3) Not sure.
4)They don't brick your console ; you do.
5)I don't see why not.
6) There are threads saying what to do and how to fix it if you brick your console.
7) It depends which CFW you're on.
KaKaRoToS or whatever his name is, his just adds the /app_home/game thing and Install Packege Files. (These needs to signed.)
GeoHot's CFW allows you to run unsigned packeges, and blocks any sort of Back Up managers.