To everyone saying it's just a channel name change, even if that is what's going on, that's still impressive considering the 3DS ran it at all, doesn't it reject anything that's not the original? Much less one that's a system file, so even if it's not a real "homebrew channel", it's still good progress
Remember that he has access to memory. He can swap chunks that were already checked for signatures, but this can only work under the conditions he's created. If this is not a photoshop,
I doubt that he successfuly modified the flash as he would be unable to resign it without the keys.
He simply injected a header into the memory and the 3DS assumed that it has already checked the system files on boot, so it showed their content. This proves that he knows how the system works, not that he is on the brink of hacking it... Unless you find soldering 150+ wires onto your 3DS convenient.