Having the majority of phones be openly reflashable, even if you lock
it down to only being via USB, opens up the possibility of a
widespread PC virus infection reflashing phones en-masse whenever they
are plugged in.

That's quite a scary scenario - the mobile networks were built on the
assumption of controlled devices and are not able to withstand a lot
of rogue devices doing bad stuff.

There are also some business considerations: for instance, operators
restrict tethering because the pricing level the "all you can eat"
plans sell for assumes usage from mobile phones. If they allow
tethering people will start running BitTorrent and the like over the
air, which will place the operators in the same kind of quagmire as
landline ISPs are in. We want "all you can eat" rate plans to become
the standard, just like on landline connections, but that requires
affordable connections. A simple way to get that is to impose a few
easily understood rules on the basic price plans, like no tethering -
and that in turn requires operator controlled devices.

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