I'm not sure what I can add that hasn't been said already, but holy shit did Sony ever fuck up with their PSN. Now, obviously this is the fault of stupid asshole hackers, but the fact that Sony wasn't taking many more precautions to protect passwords (i.e., not having plain text passwords saved on their servers) and information is galling. Add in that they didn't let people know what was up for a whole week (even if there was a hint of information breaching happening, they should have let people know) and you have a portrait of complete security incompetence.
What this story really highlights is just how awful it is how much information modern game consoles collect from their users. Why was all of this information stored at Sony HQ anyways? (there are reports that the PS3 collects information as banal as the key IDs of any USB or HDMI inputs/outputs in the system, and as potentially far-ranging as the Blu-Rays and games you play) Privacy is a dead concept, it seems, especially when those we trust with our information can't even be bothered to secure it properly, even if this was the result of an acute and direct attack on their systems. Let's hope that there isn't too much damage to the users of PSN, but I know one thing – I have absolutely no sympathy for Sony.