First of all, they who claim Verizon charged them for "illegal" tethering are liars. If you can tether without being signed up or being redirected to a Verizon Mobile Hotspot sign up page, your data use will appear as though you've been using your smartphone for all that data, not your computer/ps3/ipod touch, etc. The worst that will happen is throttling, which, according to Verizon, is for 3G only smartphones and in congested areas, assuming you're one of the top 5% of data users.
Secondly, tethering and data in general works flawlessly on my 3G only OG Droid, reactivate your 3G only smartphones, people! At least for now, and if you're not anywhere near 4G...I dunno, use your discretion, but I'm tellin ya, this is how I'm posting this.