The kernel handles poweroffs. The reason CM7 doesn't show the charging logo is because the /init program in the ramdisk. LG hacked theirs and I have yet to figure out what tells it not to initiate a full startup.
When you are charging only, LG boots like normal, but the /init program halts the boot process and loops some images. Your phone is still "on", just not fully booted. Pointless really.
As for the bricks, like I said to tmeader in PM, I'm not 100% of the specifics but I do know this:
The chain of fail is as follows:
mtd7 - this can have a "boot-recovery" flag which can get stuck, if mtd2 is corrupt
mtd8 - this is the lge bootloader flags, this is where FACT_RESET_3 goes and is known for the infamous brick from the 'resetting factory defaults from within android'
mtd0 - system will hang on LG logo if the boot partition is corrupt
mtd2 - system will hang on LG logo if it is instructed to boot into recovery (see mtd7 and mtd8), and the recovery partition is corrupt.
mtd5 - system will boot loop (LG logo disappears briefly on a timed schedule) or hang at LG logo if /system is corrupt.