I think it depends on the carrier. I'm on Sprint and it appears to be blocked. If I try to use it, it tells me I don't have a plan that includes a hot spot.
I'm assuming you're unlimited data and don't want to pay the $30 per month, right? Because if you're on a tiered plan, the hotspot is free to use. In fact they want you to use it because it uses your data faster.
As for the work around, FoxFi, I don't know if it is working on the G2. You can always try the FoxFi website and ask them.
I'm pretty sure it still only works in bluetooth or USB modes. No Wifi hotspot. I've used it in BT mode. Works fine, but isn't very fast. About 1-1.5 Mbps speedtest.