hmm
This isn't really a hack is it?
It's basically typing /system/bin/telnetd into the phone's shell app then opening a connection from a nearby computer, that you go straight in as root is similar to the situation with iPhone1.0 where everything ran as root, marginally less secure due to the lack of user/pass prompts but essentially it's like claiming 'I turned on the SMB service and now I can browse files, lol loophole!!!11eleven'
I'd expect this to get closed down fairly quickly as Android evolves to a more secure platform a la iPhone 2.0 but for the meantime, start your bricking Gtards.