Storage is always needed now of days from your PC to PS3 more space is always welcome. So this seems like a good fit an External PS3 HDD but there are a couple of flaws that make it not so great indeed.
Small Excerpt
"Well at first glance you would say an external PS3 hard drive is always nice to have on hand to save and make back-ups on, coming from the world of the PC I know that hard drives and systems can start acting screwy at any time and its always a good idea to have a back-up for those times. So when I saw that Datal Technologies, maker of the "Action Replay Max" game enhancers for the PS2, GameCube, Xbox made an External PS3 hard drive I thought that is great for people who don't want to install a bigger HDD alternative. But what I found after opening the box and running a few tests changes my opinion greatly on this product."
Don't like to read, skip to the bottom of the post and watch the video review instead.
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I was thinking about getting one of these but I won't now after reading this.
Here's a better external drive product;
1) External Hard drive case with USB 2.0 (usually retails at $20-35)
2) Hard drive (IDE cheapest/best for USB connections) of any capacity (found around unused or new. Typically $0.25 - $0.50 per GB)