Basically the most vocal hacker sent a message to the console devs AND the Big 3 (Sony, Nintendo, Microsoft) saying "pay me if you don't want your shizz hacked."
I personally expect to see him in prison or dead. Possibly both.
He's done nothing illegal (the US is one of the only countries with digital rights laws backwards enough to even raise the possibility). His message to the "big 3" was an offer to work for them to help improve their security on future consoles, and they might be smart to take him up on it. Hackers are often hired as security consultants.
I don't know the technical side of it very well, but it sounds like the biggest implication for FFXIV could be allowing tools and mods on the PS3 version of the game. That's not a big deal -- it would just put the PS3 on the same footing as the PC for that stuff.
This hack is going to be good for all of us. Maybe even Sony, in the end.