I managed to get the update while it was out, and it works for me, so im good. By the way, the issues were PS3's Bricking.
Im good too. And loving the update~ I gonna by Super Stardust soon since its awesome and I cant wait to get some trophies.
I wouldn't call it fake, perhaps exaggerated to "lol this update borked 90% of PS3s", we've had 2 members of KHInsider's Sony group who had their entire hard-drives wiped when they updated, they didn't even know about the problem before it was mentioned to them that the update was having random problems with PS3s. There hasn't been an update that has bricked Wii's or 360's yet, though 360s tend to brick on their own due to hardware problems, but never a software update from Microsoft.
My PS3 is fine. And same for some people I know who updated their PS3. It was taken overboard, mainly because it was a big firmwire update.