I remember this. This sounds a bit like what happened to me when trying to upgrade Diablo with apt-get. The install process (using apt-get instead of the Application Manager) runs out of space, and leaves the tablet in a broken state, with more packages to install, but unable to connect to the Internet to finish the upgrade.

But this might not be the same thing at all; I've never heard of anyone upgrading from Chinook to Diablo via the command line.