Believe it or not, people have already figured out ways to make backup copies of their PS3 games:

Console hacking enthusiasts have already taken the first steps towards making the PS3 backup friendly, installing LINUX and using it to dump a 7.08GB ISO file from Madden 07 onto an external hard drive. Pool Boy over at PS3News points out that this is exactly how the PSP backup scene got started, and that the PS3 file structure closely resembles the one used in PlayStation Portable games.

In the same forum post he mentions a new AdvanceMAME binary for the PS3 that allows the system to emulate arcade games through Linux, and links to a tutorial on how to install a 750GB hard drive into the console.

It's kinda funny. This is the most excitement I've seen anyone drum up for the PS3 since the system launch. There might not be much in the way of new games coming out for a few months, but the potential for the system as a set top Linux box is quite intriguing, and an angle I hadn't considered. Now we just have to see if Sony unleashes regular BIOS upgrades to quash the homebrew scene like they've done on the PSP.

Update: Gadgetell have posted an article with a 15 minute video of some bright spark getting Windows XP to run on his PS3 via Linux.