However, while reading the TOS, I did find something rather disturbing:
What I read from this, was that $ony could use video footage of you playing, or voice clips from the online chat, or in fact, ANY video, music or photo is on your ps3, and use it/sell it and they don't need your permission. Also, upon furthur reading, I discovered that $ony can take all of your gamer info (PSN ID, friends list and messages) and sell them to 3rd parties without your consent.
It almost seems as if there needs to be a Watchdog group to make sure that everyones legal rights are being maintained as it seems that $ony just doesnt give a crap.
I've just checked the PSN's TOS, and indeed it doesnt say anywhere that any user is forbidden to access the PSN if one doesnt upgrade.