Hopefully these guys are acquitted and can return back to normal life soon. If Sony sold them the system, these guys own the property they purchased.
People hacking the machine is inevitable, so it's always better to turn a blind eye to it and let this subculture exist. Nintendo seemed to figure this out and have just tried their best to thwart the hackers with a variety of system updates (to no avail, of course).
Honestly, Sony is to blame for all of this hacking anyway. Does anyone think it's a coincidence that the PS3 started being hacked shortly after people were forced to remove Linux from their machines due to a certain update?
The bottom line is this: only a small percentage of system owners will hack their machines to play stolen games and perform unscrupulous acts. More often than not, they are doing it just because they can and would've never materialized to true sales anyway. Heck, Sony probably sells a few extra systems because of it and in the end I'm sure it all works out to be a wash.