If firmware 2.0 comes with a web browser and it supports Java, I'll be perfectly content.
Why? Because there are Java GBC and NES emulators that I know of, and probably more for other consoles. There's also an incredible amount of Java games out there that are written in Java. If a firmware-based web browser comes out with Java support, then we're going to see a whole new wave of web homebrew. I don't see why Sony wouldn't benefit from that- it's not like they'd be losing any money, since I'm sure that there's no way of launching ISO's via a Java app. We'd just put the Java apps on our memory sticks and navigate to them via the browser. No need for an actual connection.
This is probably the best move Sony can make.