CJPC or NDT, can you ask demonhades to decrypt 40gb model? I think they used ps2 compatibility to run unsigned code while XMB is running. IMO is plausible because is the only way to have hdd decrypted -> by running GameOS
Just my two cents
It would seem some misinformation has been put out there and at no fault of KnightSolidus.
If you followed the Team Twiizers on Wii, they first found common key, and found ways to retrieve your own private keys, even all keys included in your wii, containing unique keys of hardware with some months of reversing and some programming, if we can access files (swear DemonHades will kick ass) we will find all we need after some months of work on Ps3. Not the same hardware, but same possibilities of retrieiving private keys if we found public, common key after some work !
Actually, Team Twiizer's work had nothing to do with the public key. Since unsigned code could already be run in Gamecube mode, they wrote a program to extract the keys from memory, and shorted something to gain access to the Wii's portion of memory.
The entire point of using a public key is that it doesn't give hackers the private key. So while the public key won't help much, the private key could still be stored somewhere (in memory, on the flash, on the hdd, etc.)