[quote name='condensed']OK, if that help's you sleep at night. It's still playing games you didn't pay for. Jack Tretton made a comment three years ago about game sharing, doesn't mean the Sony legal team or the developers agree with it. Unless you are Cheapy's offspring from a previous life, it's still not legal.
"Except as stated in this Agreement, all content and software provided through PSN are licensed non-exclusively and revocably to you, your children and children for whom you are a legal guardian (collectively for purposes of this section, “You” or “Your”), solely for Your personal, private, non-transferable, non-commercial, limited use on a limited number of activated PLAYSTATION®3 computer entertainment systems, PSP® (PlayStation®Portable) systems, and any other hardware devices authorized by SCEA in the United States or Canada (where permitted)."[/QUOTE]
If Sony is so against game sharing they would of implemented a system similar to what XBLA does.
Even if it is "illegal" there's a big difference between sharing a $10 game with only 5 downloads that's been payed for and torrenting a $60 that nobody payed for.
Also it's a proven fact that nobody reads those user agreements.