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They are used to exploit known vulns to get arbitrary read write, calls. For cheating. Both freebsd kernel exploits and browser exploits.
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Also for rooting the console, which makes it way easier to run cracked games. I think I saw a browser being used for getting root access first with PS3 unless I misremember.
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Weird to see this is still a thing on the latest console generation. Xbox runs software under HyperV which should make exploitation difficult
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The PS5 also runs apps (games/browser) under a hypervisor. There was a hypervisor escape though coupled with webkit as an entrypoint:

* https://ps5dev.github.io/ps5-wiki/hypervisor

* https://github.com/PS5Dev/Byepervisor

* https://github.com/PS5Dev/PS5-UMTX-Jailbreak/blob/main/READM...

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> I got a message to say my PlayStation Network account had received a warning and could be suspended if I did it again!

What?!? Really? Did they cite what rule you had violated?

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“Sharing malicious URLs, including those that may harm another player.”

The URL was google[.]com.

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It's still a wise idea to take it seriously. Many years ago, a then 17 y/o old ( German ) friend of mine did mitm on his own console in order to replace a video stream in ps home, recorded it for youtube/laughs. Not much later he was SWATed by the german police as if he was some kind of terrorist. His parents got a heart attack. Next he received financial death threats from a ultra expensive UK based law firm send by Sony.
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