I gotta say, I think I'm one of the few people actually looking forward to seeing what can be done with PS3 Homebrew in the near future, and not just the same old generic ISO loaders or emulators that plague most opened systems (not to say I'm not looking forward to ISO loading or what not). With the power contained under the PS3's hood, the sky is literally the limit.
I envision in a year's time, there will be tons of progress in the realm of restoring old Fat features on Slims, RawkSD-like openness for Rockband-like games, media improvements, direct-to-disc BD Ripping of movies, and who knows what else. Exciting times are coming.
It doesn't convert it to a full debug (hence the lack of Debug menu options), it merely allows for unsigned code to be ran. But as anyone knows, once you open the door, the flood begins. Look at what happened with the Wii scene after Team Twiizers discovered the Trucha bug and the Twilight exploit. Nintendo couldn't hope to stop it even if they tried (which they have, and failed. Miserably). I have a feeling that Sony will be in a similar position shortly, like they are with the PSP scene.