While I don't care about modding systems for the purpose of playing pirated games (I own a PS3 and Wii and am fine with buying games), I think this is an important case for hobbyists/hackers and anyone who thinks they should have the right to hack on their own hardware - which as far as I'm aware is what Sony is trying to set a precedent against.
I want to be able to mod my PS3 or anything else I own for whatever reason I want - whether that's to put Linux on it or do something more unique with it as part of a research project or just for fun. The fact that this can be used for copyright infringement/piracy is secondary. It is the act of pirating the material that should be illegal and enforced, not any of the technological means that allow it to happen. (similar examples: outlawing VCRs instead of the sale/exchange of copyrighted material, outlawing torrent programs instead of the action of sharing copyrighted material, outlawing guns instead of crimes committed with guns, outlawing cars instead of hitting people with cars, etc etc.)
As such, I donated a nontrivial amount to Geohot's "give me donations to help my legal defense" plea a month or two ago. I want the ability to do whatever I damn well please with the hardware that I've purchased.
Aside: I think it's amusing that Sony requested Geohot's paypal transaction records to try and help prove parts of their case. I wonder if they'll be discriminating between "people who paid Geohot for modding-related things" and "people who donated for his defense." Clearly this should be easy based on the amounts there, but I almost wish I knew how much he was accepting for modding jobs before I donated, so that I could have donated that amount N times to approximate the amount I ended up donating, just with the hope that Sony would confuse defense donations for payment for modding jobs/chips/whatever and cock up their case against him even more.