Actually, the argument wasn't that crypto wasn't loaded onto the drive after insertion. The argument was that the hard drives very own firmware wasn't encrypted, and that the internal drive itself is swappable. If it was encrypted (some of you may remember having to break your original hard drive's protection on the original xbox and duping it onto your new hdd), you wouldn't be able to swap out the disk (without breaking encryption), period. The fact remains that if there was crypto on the hdd (thereby making it console-specific) it would not be possible to swap it out for a fresh 320 gig drive. Go check Wal-Mart dude. They got the kits on the shelf.Tell me, how does swappable hard-drives have anything to do with encryption? Just because you can change drives, or swap for a larger one does not mean that it is not encrypted. In fact, all it means that multiple drives are supported, meaning an encryption that can be supported across all drives. The encryption is console-specific, meaning a drive can only be used on that console (and also because only that console has the right keys); not the other way around, which what you said means that the console is drive-specific.
I myself am not a hardware hacker. I don't like to break my expensive stuff in efforts to support the cause, nor do I know nearly enough about PCBs, traces, capacitors, transistors, etc. to successfully identify and fully utilize said test points. That's what we have techs for! And this is why I don't show people how to do it.As for the rest of your stuff, nice work on explaination. However if you know so much about these "test points" on the PS3, just how much they can offer, and all that is needed to read them, then why not show people how to do so?
That said, and given that hardware modchips are available, AND that Sony has to test 'dead' mobos (under their warranty contract), these are reasonable, plausible explanations that these test points exist. Again, I am not a hardware hacker, and haven't installed modchips, but a simple google search for something such as "PS3 motherboard test points" should bring you some good hits. As a matter of fact, modchips use these test points in order to bypass the built-in security on these systems. It has also been a proven method of bypassing security measures in other instances, such as the Nintendo DS by shorting these test points with tin foil or solder.
I stand by the fact that 1024 bit RSA keys have been cracked, and, as proven historically and mathematically, all encryption can be broken. As for the network of CRAYs - I can certainly guarantee far beyond a shadow of a doubt, that these machines, processing twelve teraflops per unit  would hardly have a hard time running through 2048 bits in a...Recommended bit count for RSA keys in any commercial application lasting past the year 2010 is 2048 bits. Quite luckily, Sony opted in for this keysize. However no CRAY network of any size will be able to crack such a key in any *decent* amount of time.
.*decent* amount of time
In debugging the seventh cell and discovering it's functions and processes would, eventually lead to an exploit of some sort. While the seventh cell is (presently) impregnable, it is not impossible to remove it from the cluster, thereby nullifying it's processes, functions and uses (and of course, potentially bricking your PS3), which may lead to custom firmwares, homebrew and anything else imaginable running on the PS3. Up to and potentially including using the BD ROM drive and built-in security measures to crack the disc, and extract the contents.Sure it is possible then (by your explaination) to debug the seventh cell, but this leads to nothing.
On a final note, I give you props for proper spelling, punctuation use and challenging me. I love a challenge. So thank you.
And, it would just be d!ckish of me to not acknowledge you, SiK GambleR! Thanks
- Developer - Modder - Hacker - Human -
Follow up to my last:
Forgot my footnote:  http://www.cray.com/Assets/PDF/products/xt/CrayXT5Brochure.pdf - Cray's XT5 brochure, pp 4, 5