173w ago - Update #2: After examining the PSJailBreak Manager .PKG File below, RichDevX determined that it was hardcoded not to boot on Test consoles, and he has now made available a patch for PS3 Debug users who can decrypt the selfs to run PS3 game back-ups with it!
Below (under PS3 Dev Notes) is some more tech info from his findings for those curious, however, please note the PSJailBreak patch above is only for PlayStation 3 Debug users. At this time it would probably be wise NOT to waste your money on this expensive PSJailBreak USB device, as a FREE PS3 scene solution is bound to surface.
Update: CJPC has received confirmation and xorloser has now confirmed that the PSJailBreak runs unsigned code on the PlayStation 3, so it appears this PS3 mod-chip is indeed legitimate!
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.