Golfman: 4.0 is completely capable of disc channel backup loading. I've had mine doing so for nearly a month. I even wrote a guide as to how to do it (though I never gave it to anyone but a few testers) though I'm positive someone else came out with a similar guide.
The only thing my 4.0 setup can't do that my 3.2 setup could was use the twilight hack.
CIOS60BF doesn't corrupt the system menu and never has. The people having the problems with it are really having problems with preloader. They install preloader first which patches IOS60 then they install IOS60BF over that. They just have to install preloader again (they can use preloader itself to do this) to repatch ios60.