I tried with -current (22/08) this morning and it does not panic. It hangs after this message:
WARNING: unable to get date/time -- CHECK AND RESET THE DATE! Just after the rootdev= line. Also for Miod, It show the same message 'uhub0: device problem, disabling port 2'. I tried other ports as well as other usb keyboards (all apple though) and still no luck. Also, maybe worth mentioning: someone made that appropriate remark that the PowerMac G5 Dual-cores are marked as unsupported in the hardware compatibility pages (In the INSTALL file it says PowerMac G5 are supported, but I assume that's for the other models.) I am willing to work toward support for this machine so if any developper has something they want to test on it, send it to me.