I have been trying to make my own theme, so I pulled Launcher.apk, unpacked, it edited some images, used apkbuilder to pack it, then pushed back onto the phone. Rebooted, no launcher starts at all.
So I figured ok, I can just use the "Factory Reset" function on the Boot System Recovery menu. Everything seemed fine.
When going through the steps to setup (or sign in) for a google account I get, process com.android.setupwizard has stopped unexpectedly... etc. Force Close. Then it restarts the google accounts process again.
I have restarted, cleared the cache, done another wipe, nothing seems to change this behavior.
Apparently I have completely misunderstood what exactly a Factory Reset/Wipe is because I thought it would just wipe out the standard partition and restore/overwrite Launcher.apk (and evertyhing else) for me...