Thanks, diba.
Yes, if you read 2. and 3. in context, it should be clear that "directly on the device" means the USB root. In other words: If you managed to perform 2. correctly, then why not 3.?
Plus, this is of course meant to also be installable by the average end user, who isnt't able to copy files onto the real root fs.
For the geeks: Note that I'm always speaking of "opt", never "/opt". If I actually meant /opt, I would have written so.