Not only that, but Sony took away local and LAN media playback. The PS3 was basically a home theater PC that would play anything you threw at it, from photos and videos and MP3s on a USB stick, to streaming DLNA over the network, to playing TV shows and movies from a shared network folder. You could even use the PS3 to browse your holiday snaps on the biggest and best screen in the house. But not anymore.
It's just a pure gaming machine, for now. Although if there's enough flak going Sony's way, I'm sure they could add some of the stuff they've taken away with simple system updates at some point.
For now I'm sticking with my PS3.