"If this doesn't get fixed and my system is shot I'm getting an Xbox." - Angry Playstation owner.
While it is not guaranteed that you will suffer these consequences for updating your PS3, since not everyone seems to have the problem, it may be best to hold off on doing so until Sony releases a statement that this has been resolved. This could not come at a worse time for Sony, who's been riding a wave of popularity since their presentation at E3.
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Update: Sony has since pulled the update from being live on servers. They are currently investigating the cause of the malfunctioning software. A Sony rep stated that the company is in the process of confirming the number of users affected. To those who currently have bricked systems, Sony issued the statement "We kindly ask PS3 users to wait for further details. We will announce when ready."