I'm with geekmaster here. Rebooted numerous times via USB shell access. And I really don't see why that would impose problems. So rebooting is not the culprit - at least not if other things are alright (like the filesystem re-mounted read-only, though the reboot should at least do a sync).
However, since there is no method of access until the Kindle is up and presenting USB mass storage or USB network access, I guess recovery using serial access is the only option to get it running again.
But then, what is this "recovery console" the OP talks about? How did he manage to put a file onto the Kindle? Some things seem to be working and the description of how it is broken really lacks a lot of detail.
As for "installing firmware": Amazon's updates are incremental. They won't restore what has been broken. They just update working firmware to a new version.
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