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Typically yes. But from what I gather, this isn't a standard USB device, insofar that it doesn't communicate like one. Its acting more like an RS232 serial interface, and the HW ID that is detected at system startup is what sends the PS3 into service mode. Serial interfaces are notorious for not being hot-swappable, hence why in the old days you had to plug a serial device in THEN turn on your system. Again I may be wrong or misinformed, and if so, someone please correct me, but I believe thats how and why.
Aren't USB's like the safest device to plug in and unplug while what they're being plugged into is turned on? I know on PC's you aren't supposed to unplug non USB mice or keyboards, but USB ones are safe to do so.
Why in the guides would they say not to have the power on when you plug it on when it apparently works anyways?
I think it has more to do with it being a general good practice to do so, as with any hardware, especially USB. Components could easily be fried due to an accidental overvoltage while inserting the device. I may be wrong of course, someone correctly me if I am.
Why in the guides would they say not to have the power on when you plug it on when it apparently works anyways?