On the PSN blog (http://blog.us.playstation.com/2010/03/28/ps3-firmware-v3-21-update/) the next update is to be 3.21 and they say they are removing the 'other OS' option from the menu of the Fat PS3s. I for one could care less. I didn't buy a PS3 to run Linux. They say you are not forced to update, but if you don't you won't be able to get online, or modern games that require the 3.21 update won't run on your console either. Yeah, sounds like an option to me...... Don't know when that update is supposed to come out.
The famous "iPhone Hacker" has vowed to find a way to bypass the update.
Source: Gizmodo (http://gizmodo.com/5505221/ps3s-running-linux-could-be-saved-if-hacker-geohot-finds-the-cure)
This story even made its way onto the BBC site...<Newsworthy?> (http://news.bbc.co.uk/1/hi/technology/8594720.stm)
The update came out yesterday.