Usually just for internet play and whatnot. You can skip it and still play the game but usually online play or options will require the patch.
It has nothing to do with PSN. It is the console not keeping itself connected to the internet long enough to perform the download for some reason. It's some kind of bug or glitch with the machine or the operating system. The software updates don't come from PSN. They are detected automatically when you run the game. I use a wireless router and my PS3 is always connected to the internet whether I'm logged into PSN or not. I clearly stated in my rant that I never have problems downloading from PSN.
Actually it can be had for 2.30 a month as recently 13 month cards have been on sale all over the place for $30.
