The big guns in the Android development/mod community (these guys are more than mere hackers) have had a week to look at the T-Mobile G2, and study the is-it-a-rootkit-or-not mess -- and one of Android's most respected and beloved developers has spoken. The problem with getting (and keeping) the G2 rooted correctly is because of a bug. According to Cyanogen (aka Steve Kondik), there is no fail-safe to reload the system, there never was such a fail-safe, and in his own colorful way claims we were lied to all along. He lays it all out in technical terms right here, but I'll try to break it down a bit.
The controller that writes files to the "disk" really isn't writing anything to the disk, but reports that is has done so. The NAND (that's what I'm calling a disk here) is locked the same way as every other HTC phone is, and no new system to protect the end user is in place. This is the exact opposite of what T-Mobile has told us. Whom to believe? Well I think you all know my answer to that one. [via @Cyanogen]
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