I'm all for this. I've played around with Linux a bit on my PS3 and while it doesn't make me hate my PS3 if it can't do Linux anymore, I am still quite upset that Sony felt they could remove something that I paid for. People keep complaining that in the terms of service that sony can change the software all they want, but this effectively is removing hardware features built in to the system (assuming you don't update to the latest firmware).
If you make the choice between Linux over online features (which were also advertised features), you will eventually lose the ability to play newer games and possibly new blu-ray movies which makes the blu-ray drive ineffective. I don't know about everyone else, but I certainly bought my PS3 more for blu-ray playback than games playing, though I happily do both frequently, and this ultimatum Sony has placed on me means that I will certainly be screwed either way. Way to go Sony.
That said, I am currently happy to play my Final Fantasy XIII offline and keep 3.15.
If you read the PDF of the filing, the reason it is filed in CA is because that is where Sony's main location of business is in the United States. I don't see how it could be filed in another state unless Sony bases it's business there.