The problem seems to be fixed (for me).
I played the whole day yesterday and didn't get a single Timeout issue, and connecting to other peoples' games was fast.
Well done, Arrowhead team, whatever you did, it worked!
Now time to go spread democracy!!!!!!!
For first time in a long while (since around Liberty Day) I was able to use the friend list on the PS4 to join on a friend. It came up quick, showed status of their game correctly, and let me join without running into issues.
The square button on PS4 to get updated status which is needed to join a PS3 or PS-Vita friend I know is online is still broken, but aside that things are back to the way they used to be. Maybe even better.
Please extend thanks to full Helldivers team at Arrowhead and whomever you know at PSN side that helped to resolve the issues. I hope this is a lasting fix
PS - I'll make a point to test how things are working from my PS-Vita. The Square button worked there, but wouldn't pull up updated status. I'll report back if issues gone or still there sometime tomorrow.
Following up on this thread - are your connections still working well?
Connections have been close to flawless based on personal experience and feedback from the reddit forum.
It's back to the same level of stability before the PSN patch that coincided with Liberty Day 2016.
Please note that the PS4 "Request Friend Info" seems to be disabled still.
Everything is being rock solid good on PS4 so far, except the square button to refresh status to be able to join on PS3 / PS-Vita friend is still disabled. I haven't tried on the PS-Vita yet... I need to do that still.
Following are the Vita testing results
Vita to PS4 works
My wife account on Vita was able to join my account on PS4. I initially appear offline (even when I am online), but pressing the square button fixes it almost instantly and then her account is able to join.
Vita to Vita does not work
My wife account on Vita is able to see my name in her list, but even pressing square it never gets updated status correctly so she is not able to join on my account.
Note: I am not able to try this in reverse because my wife account is xplicitrock and I think the friend list on Vita only shows first x-number of friends (not sure how ordered) but she isn't on the list for me to try and join. I have 250+ PSN friends, and she has more like 25 or so which might be a factor.
PS4 to Vita does not work
The square button to Request Friend Info is disabled on the PS4, so even if my wife account on PS4 is able to see my username while I am online on Vita, she is not able to update status to be able to initiate join.
The Vita is getting the public list as quickly as the PS4 and being just as successful at joining those (meaning working well now, while before it was less reliable).