Homebrew
From PS3Wiki
Homebrew scenes for the PlayStation 3 have not been as big as the PSP (PSP Homebrew), because of tightened security. But there have been some exploits carried out on the PS3 successfully, although they can't make the PS3 run PS3 Backups.
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Early Exploits
When the PS3 was released, there were lots of reports of running homebrew; people reported on getting making ISO emulators. But none of these were released.
Linux
Linux could be installed on the PS3, so many more oppurtunities could be made.
Emulators
Emulators for Linux were made, but often buggy and slow; they can still be played today, but people use the official PS3 Internet Browser instead; just to play flash games, as it is much faster.
Graphic Synthenizer
People tried to use the Graphic Synthenizer when runnnig Linux on the PS3. There were many tests to make this happen. Unfortunately in the Firmware 2.10, the ability to use the Graphic Synthenizer was blocked.
BD-J Hack
This was the only successful homebrew which was released fully working. But you had to get to rip a Blu-ray Disc to get the games to play. The hack allowed you to run simple java games such as tetris on the PS3. Many games were released. Unfortunately in Firmware 2.50 it was blocked.
PS2 Emulation
There have been many reports of playing PS2 backups from the Hard Drive of the PS3. Unfortunately it works only on the early PS3s (20GB & 60GB) which had the Emotion Engine (Not Emulation); also it has to be a Japanese or American Model. If you have all of the above, you might want to try it; here is the tutorial.
