Policy group New America has written a scathing blog entry that criticizes the HTC G2 for including a "hardware rootkit" that prevents users from installing custom firmware on the device. The report appears, however, to be based on a misunderstanding of technical issues raised in an XDA discussion thread.
The G2 isn't unique in blocking third-party firmware, and it doesn't come with anything that could correctly be described as a rootkit.

In fact, the NAND write-blocking mechanism in the G2 is nearly identical to the one that HTC has included in the EVO 4G and other previous devices. Android modders say that it will eventually be cracked, just like every previous attempt by carriers and handset makers to impede third-party firmware modification. The issue of phone openness is worth exploring, but it's a lot broader and more nuanced than New America realizes.