Sony wasn't taking NOBODIES rights away, they were sueing a man for hacking their ps3 system. He clearly violated sony's rights
Firstly, lrn2ingrish (irredeemable idiocy of this statement was fully intended)
But more importantly...
Assuming he wasn't lying about having never created his own PSN account (they can prove someone created one at his house, using his PS3, but they haven't confirmed whether it was him or not, and it wasn't done using his name)...
He never recanted the right he currently has to do what he wants with his system.
There's legal precedent for people to have the right to circumvent a company's security systems on a device so they can install software that device won't normally run - if it's pirated software you're running, then the piracy itself is a crime, but modifying the device in a manner which make piracy easier isn't - people who don't have access to the "proper" tools to make iPhone apps, but are skilled enough to do so, can get jailbreaks so they can create their own software for the device. People who have developed awesome ideas for apps but can't get them funded can make versions of the app which will run on a jailbreak iPhone - they've had a court case where Apple tried to sue someone doing this to their devices for a legitimate reason (NOT pirating someone else's software) - targeting the person because he released details on how other people can do the same thing to the device - and they lost the case. That established legal precedent for a person having the right to use their purchased device as they see fit. As geohotz appears to have done with his PS3 - and they haven't found any indication that he, at any point in time, ever, used his knowledge to do anything except add an alternate OS to the PS3 - a function which was available when he first bought the device, but which Sony removed shortly after someone said it would make the system easy to hack (they cited "running costs" as the reason, not the claims of an easy hack, but it's worth mentioning it was days after someone called the Other OS option a vulnerability when they removed it).
The reason Sony's case hinged entirely on Geohotz having a PSN account is that in the terms and conditions for PSN, which you have to agree to while creating the account, it states clearly that you agree not to take any action to circumvent any security measures built into the software or hardware - if you have a PSN account, or EVER HAD ONE, you're legally bound by that agreement. If not, there's plenty of ground for you to turn around and say "My property, I'll do what I like." If he had an account, then he agreed to waive some of his rights as to how he uses his PS3. If not, then he had legal precedent in his favour.
TL;DR - He hasn't been proven to have violated any of Sony's rights, and while it's possible he DID create a PSN account, and claimed it was someone else's to avoid legal problems, there's not enough evidence to say either way conclusively. If he's lying, good luck proving it - if he's not, he didn't do anything illegal. Bottom line: WE DON'T KNOW WHO WAS RIGHT.