You might argue that the firmware they're running is a modified official version, which is under a restrictive copyright license. Whether they're right or wrong to do this though, it is a separate issue from being allowed to run unofficial firmware on your own property. Now this unofficial PSP firmware may largely be used by people intent on violating copyright law. I run OpenWRT on my Linksys WRT54GL, which I'm fairly certain is legal, but even if it weren't legal it would be the law that is the problem, not the people who were illegally running OpenWRT on hardware that they owned. If I purchased cisco hardware, I think I should absolutely have the right to run alternative firmware on it. Sorry, are you really that incapable of clear thinking? This is not about copyright infringement, nor would your hypothetical situation be.
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