and then ask the hackers not to release the code and tools (and possibly provide additional incentives to sign an NDA).
I mean, by publicly conceding their accomplishment and and by giving the public back what they took away previously, it becomes harder to argue that the cracking tools need to be released. Of course the whole message needs to be calibrated just so it won't appear as giving in to blackmail. It will give them and game developers more time to reap the cost of developing the PS3 and games.
Earth is a beta site.