The hacker proposed some very intelligent thing: Going through all IDs possible and get everyone banned.
This is really sinister, but could actually work. If too many false positives get banned, Sony MUST deactivate the banning mechanism to protect the legit users. Sony then needs to come up with a different method, most likely weekly updates with rotating encryption.
But the one who dares doing that risks serious damage to his life. And i am not talking geohot getting sued damage, i mean getting your rear pounded in jail damage.