Sony, when contacted earlier today, said they do not comment on rumors or speculation.
Playstation Home sounds like it could be an interesting, lo-fi, killer app, as described by our source.
Basically, you get to make an avatar for your console (like a Mii) and this avatar has a room. As you play games and accomplish certain tasks, you will receive items with which to adorn the room that are specific to the game (achievements). The kicker is that this is going to be a new requirement for every PS3 game...
This also sounds kind of like it could fulfill the promise Sony made at last year's GDC keynote to bring social networking to the PS3.
So we move from product based to service based, starting with packaged product augmented by downloadble content. We'll enhance this with social networks, the MySpace experience, this will be a key part of the PlayStation3 going forward. What brings it to life is the voice chat, the text chat, the video, the social features we're building in for the future.