Okay, obviously, the recovery thing didn't take
Another cheap shot in the dark: Did you try to launch a reset to factory defaults? Either from the settings menu if you can, or the hard way (cold booting with [HOME] pressed, follow the reset procedure on screen)?
Can't remember how/if the factory reset wipes the userstore... let me dig up my K3, I'll take a look.
EDIT: Yes it does
As for usbserial, can't say, I've never used it. What I do know is that on proper serial, you would be getting a getty prompt to login at that point
. (And with a broken userstore & no console, setting up usbnetwork would be tricky. That said, it does appear to be installed on the image you flashed, because I see my init script in your logs. But given the fact that it operates mostly from the userstore, that doesn't help us very much ^^.)