What a joke, what a person does with what they buy is no ones business but their own. So long as their use of the item does not hurt or endanger others. Modding a console to get additional features and benefits is fully within my rights to do so. If that requires me to have a mod-chip, then so be it.
Once I buy the item it becomes my property. If I buy a PS3 and want to get a mod-chip, ... someday ... , to let it give me back rubs, tuck me in bed, tell me how much it loves me, and to play a backup copy of a game I bought in case the original gets lost, damaged, destroyed, or stolen then I should damn well be able to.
Sure, a console "as is" may be awesome, but what if I want some homebrew apps, a lot of them add more functionality than the console came with or would ever have. I can understand the piracy concern to a certain extent, but here in Canada I'm charged a blank media piracy tax of sorts anyway. That almost condones it in a way. But telling people they cannot have a mod chip for fear of what they might do with one is ridiculous.