PSP doesn't really punish the users though. The platform is pretty much "open" now.
In general, businesses will always try to incentivize purchases. It's marketing. It will always run with or without piracy.
For the OtherOS incident, I think the blog mentioned "security concern", it could be piracy, stability, cheats, or other security-related issues. I believe some cost element is involved too whenever you talk about security. You can always scale the effort up, but there is a cost to the provider, and a cost to the users (flexibility, performance and other usability concerns).