PKG conversion is superior for digital-only CFW setups, but requires careful handling of title keys and EBOOT modification. The recommended workflow is: ISO → JB folder (via PS3 Disc Dumper) → PKG repack (TrueAncestor) → install + apply disc bind patch if needed.
The most reliable way to convert involves unpacking the ISO and rebuilding it as a signed package. how to convert iso to pkg ps3 better