I don't know how I was talked into reversing a FTL, but we're actually on our way. I've managed to enlist the aid of CPICH (who has been helping with the lower layers as well, he's our human HexRays) and just recently, pumpkin, who you will know from the Dev Team. pumpkin will be the heavy support that's necessary to take down _FTLRestore, which is the most complex function I've seen in 1.1.4 iBoot (and I've pretty much have seen all of it). pumpkin is very good, so this task should be now be cut down to "fairly difficult" from "completely impossible".
The strategy so far has been me methodically hacking through the functions in the order that they are called, completely decompiling them, understanding them, and assimilating them into openiboot. Toward this end, I've been working on FTL_Open, which is a fairly large (but as it turns out, boring) function, but has been useful in enlightening us on several of the large data structures FTL uses.
Meanwhile, CPICH works on functions ahead of me, so that when I reach them, a lot of the thorny underbrush has been cleared out and my job becomes much easier and faster. Toward this end, he has been working on FTL_Read, which uses the data structures that the now-completed FTL_Open should populate.
_FTLRestore is sort of a "bonus", since it's not normally called if the iPhone was shut down normally and everything is cleaned up. However, since recovering faulty data structures require all redundancies to be exploited, reversing this would let us gain a lot of insight into how the FTL works. It's also, naturally, an enormously complex function, and hence I wisely delegated it to pumpkin. =P (We will probably end up working on it together)
The one thing that troubled me was that the code we were reversing is for 1.1.4 whereas we primarily need it to work on 2.0. However, due to the fact that I had it better mapped out than the 2.0 iBoot, and the fact that the equivalent 2.0 code was much more complex (lots of function pointers flying around, and a weird switch idiom I haven't quite figured out yet), We decided to stick to the 1.1.4 iBoot.
After completing FTL_Open, I had a bit of a panic when I discovered it did not work at all on my 2.1 phone, and I could not find any obvious bugs with it. This might've meant that all our work on 1.1.4's FTL was for naught. Forgoing sleep, I tore through the 2.1 iBoot, locating the analogues to my already reversed 1.1.4 functions (I had given up trying to trace through the function pointers the first time around), and called them directly with my special version of iBoot (patched so that one of the commands was able to call arbitrary iBoot functions with arbitrary arguments). I managed to find a couple of bugs with my VFL code, and after having fixed them, FTL_Open appears to have worked. I think. It just finds and reads several data structures from NAND. It remains to be seen if I'm even reading the right thing.
Now for some sleep.