Hey shogun168,
Yes, I put it on a USB drive and installed through the hondahack application, though I haven't used any apps downloaded through there now that Codeage has US apps available for download and I don't have to worry about the version of android on the head unit working with the...
I'm not able to get it to change either. Have you tried changing it to device while having a laptop plugged into it and then making the change? I also noticed when I went into that menu that my setting is 'host' by default. I used the wireless root method so I never had to change that value...
I contacted Codeage (the developer of Hondahack) on the XDA forums and sent him a DM requesting to try out the wireless root method. He sent me a validation code and URL to go to. So far it seems to have worked great to root the device.
I have not (yet) installed/updated any system apps/play...