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Works perfectly fine if he just wants to bypass the region restrictions on YouTube though? If he is downloading via newsgroups most providers offer SSL/VPN anyway. If you do decide to download via newsgroups make sure your provider and client supports SSL3/TLS1 and that it forces strong ciphers :)
The problem with this is that credit card/debit card fraud is so common people will just presume it all happened because of Sony. Anyone that has their card cloned/keylogged/form grabbed will be moaning it was Sony for the next 6-12 months.
You can't change your PSN password as PSN is down. When it is back up change your password. If you have a debit card linked to your PSN account ring your bank, they will advise you as to whether to cancel your card or not (certain banks are, certain aren't). If you use that password for...
Just remember, never tick the button that says "Save my payment information so checkout is easy next time" if paying by credit/debit card :)
(when using steam)