According to one individual with a highly questionable reputation, this concept project could work because PS1/PS2 discs are authenticated only once on the VSH though liblv2 and the PIC chip would just automate it.
However, if Sony updates liblv2.sprx and more specifically ps1rom.bin so the emulated mechacon is updated it could be patchable.
Finally, to roughly translate from the video's caption:
"This video montage shows the operation of the chip that we are developing to load copies of PS1 and PS2 (if you're retro) in the PS3.
This video shows how to work, without leaving the console open and without switches etc out.
More information on the development of moddchip www.demonhades.org."
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Hey boss could the ps3 be fooled like the ESR for ps2... for example lets make a blueray movie disc and place all the game files in the structure then point the play movie bluray startup file to the ps3 executable on the disc once the drive is unlocked cause it picks up the ps3 game as a bluray movie...
Any thoughts?? Seriously make a fake bluray movie structure, place all game files in the structure then point the play movie button to the ps3 executible file?? what's the worse that could happen like the drive is unlocked and the executible may boot just wonderin...
I said, no current but future updates may can detect it, but very unlikely to detect during game. I understand it is entirely hw based, but still, if they want, they can do another media-type-detect after you started from xmb; but very unlikely to do it during game (swap-disc ready).