OtherOS was a way for Sony to work around higher tarifs. General computing devices (enabled by OtherOS) had a lower schedule than consoles.
It was retroactively removed when people started getting close to enabling full GPU access. This was previously crippled under OtherOS to prevent games developed without the PS3 SDK.
> It was retroactively removed when people started getting close to enabling full GPU access
It was retroactively removed when Sony started worrying about "security" concerns - aka people running unlicensed commercial games, which is usually the killer app for any firmware that supports customization and programming.
It was also advertised on the original PS3 box.
Ultimately there was a lawsuit and some PS3 owners got $10 apiece.
As PS2Linux owner I think that was a reaction to the way the Linux community handled PS2Linux.
Instead of following the Yaroze footsteps, and being a way for a new indies generation to learn how to create console games, the majority used PS2Linux for classical UNIX stuff and play games on emulators.
Note that PS2Linux had GPU access, via PSGL and an easier high level API for the Emotion Engine.
It was retroactively removed when people started getting close to enabling full GPU access. This was previously crippled under OtherOS to prevent games developed without the PS3 SDK.