The lawsuit was about the PS3 removing the OtherOS feature. Which, while handled poorly, made some sense.
The system was initially sold at a significant loss, with the software making up for it. The cell architecture made it excellent at distributed processes, so with the OtherOS feature suddenly the cheapest way to build a supercomputer was buying a bunch of PS3s being sold at a loss and linking them together. Any systems built that way were essentially subsidized by Sony.
What they could have done is have the option to pay to unlock the bootloader for the OtherOS install.