Corporate Thug
Lifer
It's basically a warning shot to others who may think about releasing jailbreak or root key. Compared to individual citizens, Sony has near unlimited resources to sue the pants off of anybody. Even though the company settled, it still put Geohot in a financial bind and he had to solicit donations. I'm sure part of the reason that Geohot settled was because he saw the financial writing on the wall that he wouldn't be able to pay his lawyers to go the distance in the trial.
I disagree. Hotz basically put a neon arrow over his head to bring everyone's attention to the fact that he uploaded the jailbreak. It would be very easy for the hack to proliferate anonymously.