Actually you do need some of these updates as they fix java menu issues on some discs that even after running through AnyDVD and removing encryption and the folders the discs still wouldn't play until you updated the firmware. I haven't used my PS3 for any recent discs as I now use my PC instead, but I know I've had issues in the past where the menu's wouldn't work unless I updated.
Never seen that on a PS3 myself.. And I have access to 7 different PS3s on all different versions of firmwares for testing purposes that I use daily (not counting my two personal machines at home)... The only problem I've ever seen on a PS3 was the Sunshine issue where the movie Sunshine wouldn't play properly AFTER updating the firmware to a certain version. The studio had to press new discs to solve the problem, not a new firmware (as it was, technically, a programming bug).
Not saying it's never happened, but out of the 7 PS3s and 11 other Blu-ray players, it's always the PS3s that play things back flawlessly (assuming the disc is programmed properly at least...), regardless of the firmware version. I don't work with every studio, so I don't see every disc or anything, but I certainly get through more than the average user...
But still, that's not really the issue.
I'd like to make discs that don't FORCE me to update. That's what AnyDVD should be about, giving us the CHOICE... Just like giving us the choice to make backups of our discs. It would just be nice if AnyDVD would give us the option of disabling this 'feature' automatically. If the PS3 would allow you to just select 'no thanks' and continue playing the movie, it would be no big deal, but unfortunately it doesn't. Are you actually trying to argue _against_ adding this functionality? If it's a feature you can turn off, do you really care if it gets added or not (assuming you would never use it)?
I just fear this problem is going to get worse as time goes on, especially if Sony gets other studios to start including the firmware updates (which I think maybe they already have, I could have sworn I saw it on a non-Sony disc once already...)
If there's a disc out there that simply won't work on a PS3 unless it's updated to the latest firmware, then I'll rip the disc and pull the feature out of it and burn it separately with no menus.