It does a generic corruption check (gunzip test before simply unpacking KoboRoot.tar.gz) which protects against incomplete downloads - I guess. This check was added at some point in 3.x firmware I think.
It does a md5sum check for new kernel images (manifest.md5sum included in firmware update zips) and files are named in such a way that it won't just use a file intended for a different platform.
But that aside it doesn't check anything at all - that also why it's so easy to install mods, just drop a KoboRoot.tgz in there and off it goes.
So yes it's possible to completely brick with a wrong KoboRoot.tgz - with any luck, factory reset should still work.
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