Maurice, whenever you get a chance, would you mind a quick explanation of what changes you've made in regards to tinboot and how you've combined ext2 and data.img into the rootfs? Is it just copying all of the files from kernel, ext2 into rootfs, then genext2?
I also think that combining modules with kernel would be best since they need to be replaced at the same time anyway. So we would have initrd.gz, rootfs, and the kernel/modules basically doing away with system.ext2 and data.img. This would make it so we can do update.zip to update just the kernel/modules
Also, I updated the first post on making the rootfs and modifying tinboot2.S for everyone else. If you have any suggestions or improvements, please let me know. This stuff is a hobby for me, and I know I'm not an expert in this area. I am always open to being schooled