T-Mobile G2 said to have 'hardware rootkit' that restricts modifications (update: confirmed)

Say it with us now: "Here we go again." Just months after a particular eFuse predicament left legions of Droid X owners fuming, it seems that an all-too-familiar scenario is presenting itself to the earliest of T-Mobile G2 buyers. As the story goes, there's a problematic microchip embedded into the handset which "prevents device owners from making permanent changes that allow custom modifications to the Android operating system." That's according to a lengthy New America report on the issue, which outright proclaims that a hardware rootkit "restricts modifications to a device owned by the user." In other words, if you install some fishy (or not fishy, for that matter) third party ROM, the phone is capable of overriding your software changes and reinstalling the original firmware -- makes perfect sense considering how earlier roots were "vanishing" post-reboot. Needless to say, this isn't exactly going over well with the tinkering community, and a 40+ page thread has already exploded over at xda developers. The silver lining isn't tough to spot, though -- chances are someone with ample time and sufficient coding skills will be able to circumvent this nonsense by the time the G2 actually finds its way back into stock.

Update: And now T-Mobile confirms our worst fears. If you're looking to root, you best look elsewhere. Here's the full statement from the carrier: "As pioneers in Android-powered mobile devices, T-Mobile and HTC strive to support innovation. The T-Mobile G2 is a powerful and highly customizable Android-powered smartphone, which customers can personalize and make their own, from the look of their home screen to adding their favorite applications and more. The HTC software implementation on the G2 stores some components in read-only memory as a security measure to prevent key operating system software from becoming corrupted and rendering the device inoperable. There is a small subset of highly technical users who may want to modify and re-engineer their devices at the code level, known as "rooting," but a side effect of HTC's security measure is that these modifications are temporary and cannot be saved to permanent memory. As a result the original code is restored."