Users report, via the official PlayStation forums, running into numerous hardware problems since updating the PS3’s firmware to the recently released version 2.0. The complaints include a slowdown in console functionality, the loss of content, and even consoles being unable to read discs or ceasing to function at all.
It is indeed typical of updates. Our suggestion has always been: don't update right away. Wait a little while to see if any issues shake out. Recall the issues with the Leopard Mac OS installs?