The purpose of the USB update is likely to present a minor inconvenience thereby discouraging people from reverse-engineering the firmware and providing modified versions.
That said, the USB update went horribly wrong for me. I have to ask the people at Kobo, what is better, having no customers because you repeatedly brick their devices with firmware updates, or having a lack of publisher backing because your device is too open? I caution that you have stepped a bit too far on the former side of this.
I wish somebody would have posted the SD card image or contents as that would have saved me many hours of frustration.
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