My Android smart phone has fancy features that I can get only if I root it, e.g., free-wifi tethering or Cisco VPN (with group name/password). However, the procedure to root my phone makes me question the underlying security model.
Specifically, I used a Lifehacker's method that uses an application called "Revolutionary" that first gets the phone into S-Off mode (so you can access the parts of restricted parts of the NAND flash memory). Then it downloads and installs ClockworkMod recovery and installs to the bootloader, from which I can then run to install a superuser.apk (e.g., from here.)
Revolutionary is closed source, so I have absolutely no idea if it does anything extra to my phone; e.g., install a (malicious) rootkit, keylog my activities, using my phone in botnet ddos attacks, etc. I don't keep super-sensitive data on my phone, but I still want my accounts to be safe and stay in control of my phone. I'm also a bit paranoid that Revolutionary needs a key that you get from their website if you submit your serial number.
SuperUser.apk also appears to be closed source, but seemingly vetted by the avgfree anti-virus team as well as Android marketplace. Though I assume I can use tools like android-apktool to re-egineer the apk. I can't figure out whether ClockworkMod is open source.
Have any security experts looked into these tools? I've tried running Revolutionary through a decompiler/disassembler, but couldn't make any headway. Have there been any published accounts of attacks via this method? Am I being overly paranoid? Should I worry that one of these apps did something like DroidDream?