According to this blog post from Sony, the upcoming v3.21 update that is coming shortly will kill all Linux installations on the PS3. It will also disable the “Install other OS” option from models with that functionality.
From the post:
The next system software update for the PlayStation 3 (PS3) system will be released on April 1, 2010 (JST), and will disable the “Install Other OS” feature that was available on the PS3 systems prior to the current slimmer models, launched in September 2009. This feature enabled users to install an operating system, but due to security concerns, Sony Computer Entertainment will remove the functionality through the 3.21 system software update.
For those PS3 users who are currently using the “Other OS” feature but choose to install the system software update, to avoid data loss they first need to back-up any data stored within the hard drive partition used by the “Other OS,” as they will not be able to access that data following the update.
