George Hotz, responsible for hacking the PS3 and causing the removal of the OtherOS functionality on the PS3 is recommending that user do not update to Firmware 3.21. Why not? Hots is looking to release a custom firmware once the new update is released to retain the OtherOS option for those that want it.
In his own words, Hots wrote:
A note to people interested in the exploit and retaining OtherOS support, DO NOT UPDATE. When 3.21 comes out, I will look into a safe way of updating to retain OtherOS support, perhaps something like Hellcat’s Recovery Flasher. I never intended to touch CFW, but if that’s how you want to play…
Two things, some people seem to think CFW will enable some sort of piracy. It won’t. It’ll just be a custom version of 3.21 that doesn’t lose OtherOS support. Hacking isn’t about getting what you didn’t pay for, it’s about making sure you do get what you did.