Ya i don't think this is an issue of innovation. Just like in IT, if your update breaks the system you fix it, period. You can't push out an update, have that update break the system THEN say well sorry, you have to pay for that, even though we suggested you update that... and we were the ones that updated that for you.
That is just rediculous to think Sony actually said to these customers that they had to pay for this. I'm glad they are sueing over this. Make them accountable for their upgrades.