It’s a device that allows you to read and program non-volatile memory (NVM), in the strictest meaning . . . What can be done with it? Well, say you have this new car and want to mess with its calibration data – pop the hood, find the ROM (NAND/NOR, supports both), solder it to it, hook it up to your computer via USB, fire up the software, do the work. This is NOT limited to cars – it can also program flash that is contained in PS3, PSP, PSP Go, Wii and Xbox 360. Large block, small block, doesn’t matter!
Well, this is a complicated question. GeoHot “extorted” Sony on paper (“If you want it secure bla bla bla hire me”) and accepted donations at some point. That’s him making money after a failed extortion. In this case, we don’t give a sh*t about Sony. I don’t even play PS3. If you want to use it on PS3, go right ahead, then each and every producer of flashers will be prosecuted or in this case: persecuted.
“The cook” was *explicitly* advised to remove the sniffing abilities to get rid of any kind of troubles. Originally, it was intended as a programmer, logic analyzer, and pattern generator – all very legal in their own purpose – however, in a potential civil lawsuit, this could escalate to criminal lawsuit, due to European/International IP laws, specifically concerning intended circumvention of TPMs. It’s like distributing hunting rifles without a licence: you’re bound to get f*cked when the first idiot commits homicide/suicide. Don’t make it possible and you’re free from worries.
In conclusion, if you’re into homebrew: be excited, but if you’re just interested in playing games then there’s nothing to worry about. For more information on ProgSkeet you can read the article I wrote yesterday on the device or visit the official site, which at time of writing is still under construction.