Chips are illegal?
Hang fire. You buy a console. The hardware becomes yours to do with as you please. You choose to put a chip in. What right has anyone got to stop you? Am I not allowed to buy a standard PC and slap a Blu-Ray writer in it because it might allow me to be naughty and copy PS3 games? Get fecked!
Surely they should only be able to do you for actually playing or owning pirates games, not having the capability to do so?
Reminds me of the whisky still joke...
"Jimmy McDougal, I find you guilty of illegal possession of a whisky still."
"But yis honour (ho, hey), it's been at the bottom of me garden for a hundred years! I've never used it to make anything!"
"Nevertheless, you have the capability to do so."
"Alright. Well, while I'm here, you'd better do me for rape as well."
"Jimmy! Surely you haven't!"
"No, your honour, but I've sure got the capability."