Absolutely. I can use all the functionality with no problems. eMMC is not corrupted.
The system was tweaked previously (since original FW was 003 -- Chinese region, i added repos for 001 to have Skype, Facebook etc).
So maybe that could be a reason. I am reflashing device with erasing all user data and reflashing eMMC as well. Will report if this helped.
By the way -- after flashing dual-boot kernel the system erase did not work. Well, it worked and device reported that all user data has been wiped, but after booting back to MeeGo all old data still was present in /home/user/MyDocs/, contacts and old SMS, MMS etc were still there. Not sure whether it is fault of kernel, but worth to double check.