Some more details from modrobert: I've just got verified that 3k3y will use the old ISO backup format for games, not the decrypted PSJB format. So we finally get 1:1 game dumps again, great news for the release groups.
Using PS3 Linux the games can be dumped with the following command:
Code:
dd if=/dev/cdrom of=game.iso
As it was done years before PSJB (first USB dongle) was introduced. Video will be released on Saturday or Monday.
From Mistawes comes a (slightly related) Homebrew from BD on PS3 video:
From deank (via ps3crunch.net/forum/threads/4969-UPDATED?p=53872#post53872): You can also dump discs to ISO format in multiMAN (since version 02.07.00) when you enable Direct-Disc-Access-Mode (DDAM). It will create the same 1:1 encrypted ISO as what you get in linux or on the PC with blu-ray drive.
Are you sure that the ISOs will be 1:1 sector copies (ENCRYPTED). Because it is possible to have it in ISO, but already decrypted.
In the second case I see no reason why homebrew apps won't work
You can always re-package a homebrew in disc format. Homebrew apps will need some tweaks and changes, but basically all of them can be converted to ISO. 
It doesn't matter what the PS3 supports. The ODD software handles the external HDD file system and it can be ntfs, ext or whatever they decided to support.
Why would you have to resign everything? You can play the disc with Assassin's Creed 1 on firmwares 1.90-4.30 can't you
and it is signed with known older keys. There are tools (like make_self) which in their latest versions produce 1:1 self files as if signed by Sony itself.
That's why I see no reason why a homebrew (Showtime or Retroarch) won't work - that is if ODDE supports decrypted ISOs. If it requires ISOs which still have the disc-layer-encryption then I'm not sure... Right, for it to work you'll need the key to create authenticated discs (just like the key found in ps3gen dll for masterdisc encryption). Then you create an ISO and it will work with 3k3y.
The decryption of the encrypted sectors (the disc-layer-protection) is handled by the BD-ROM drive after the disc is authenticated, so I guess it is possible to spoof some of the atapi communication so you can read from a plain (non-encrypted) ISO. Just my 2 cents...
The fact remains that you have to dump your original game disc to 1:1 ISO.... I don't have a BD-ROM drive in my PCs, so how can I do that? I'm on 3.55 so I can dump my current discs, but later on it won't be possible. (Buy a BD-ROM drive, Dean! Really.).
Basically it is a good thing since you can play all the games you bought after you rip them to ISO (no piracy here, unless you download ISOs of games you don't actually own). The downside is no homebrew - as simple as that.
Just as a simple POC, here is mM repackaged as PS3 Game Disc (Game):
Download: multiMAN [RETAIL and MASTERDISC].rar (33.27MB) / multiMAN [RETAIL and MASTERDISC].rar (Mirror) / multiMAN [RETAIL and MASTERDISC].rar (Mirror #2) / multiMAN [RETAIL and MASTERDISC].rar (Mirror #3)
multiMAN 04.06.02 [MD].iso is a MasterDisc ISO (encrypted)
multiMAN 04.06.02.iso is a regular ISO (not encrypted, but may require disc-layer-encryption to be added)
Contents:
Code:
\PS3_DISC.SFB
\PS3_UPDATE
\PS3_UPDATE\PS3UPDAT.PUP
\PS3_GAME
\PS3_GAME\ICON0.PNG
\PS3_GAME\PARAM.SFO
\PS3_GAME\PS3LOGO.DAT
\PS3_GAME\USRDIR
\PS3_GAME\USRDIR\EBOOT.BIN
\PS3_GAME\USRDIR\GAMEDATA.DAT
If you somehow find a way to burn it to a genuine PS3 disc
or use another way of redirecting your BD-Drive to an ISO you'll see how it works. It behaves as a regular PS3 game, it doesn't require a previous mM installation (like regular games), installs the 'game data' to the internal hdd and works the same way as if installed as a package/npdrm (.pkg). Tested and works with firmwares which support ISO loading.
It is just a simple proof that any homebrew app can be 'converted' to game-disc version, provided the homebrew authors are interested.
Good luck.