Actually mate it can record while you are watching a DVD / Bluray or playing a game.
What I am angry about is that when they released Play TV in Australia the government would not give it the "freeview" tag without SONY removing the ability to copy recordings to the XMB, thereby stopping people in Australia from moving recordings off the PS3 onto external drives, etc.
TIVO, which is also Freeview approved (and owned by channel 7) does allow you to move recordings off the TIVO to your PC, etc ... but you have to pay a large some of money to get the software.
A lot of double standards at the moment with out governing bodies.
MW2 can have a level where you can kill innocent civilians, but L4D 2 is highly cut because the censorship board were upset that players could kill "Virus Infected" humans.
THEY ARE ZOMBIES FOR &^*$%&%^$ SAKE! YOU ARE SUPPOSE TO %&^$&^$ KILL THEM!