"Rather than using WiFi hotspot, you can actually just use USB tethering, providing your single PC with internet, then turn on Internet Connection Sharing and let friends connect through your PC."
Are you saying that hotspot was eliminated with update, but USB tethering is still functioning?
Or that USB tethering will function IF we download Peter Alfonso's updates?
Who is Peter Alfonso?
If you installed CW Mod, then you were also instructed to download ROM Manager from the Market.
ROM Manager gives you the option of downloading additional ROMs, some of which are offered by Peter Alfonso. Long story short, he creates ROMs that are basic installs, no-frills, no "custom" builds, simply root-access builds that are essentially stock but with root access and minimal default processes running (i.e. no Sprint services running in the background for no reason eating battery life).
And
yes, you need to be rooted to install the baseband update, however there's now a tethering fix for 2.3.5 also offered by Peter Alfonso, so at this point I'd suggest installing his
"Stock Rooted GRJ90 Deodexed" ROM (this is 2.3.5) and then installing the 2.3.5 Tethering fix.
Just to clarify: What I meant before was that
1) WiFi hotspot was disabled via the update (2.3.5 GRJ90), but I'm unsure if it was actually intentional or if it was a fluke because
2) The baseband was also updated and this actually could be related to the WiFi Hotpot issue and
3) Yes, USB Tethering is still fully functional in 2.3.5.