I tried the kernel 2.6.34-rc2 and get no USB host and no Ethernet (which is connected on USB). I tracked down the problem to a bad configuration of the reset pin of the USB hub (USB3320). The last update added the use of a common omap serial init which init ALL uarts whereas on the Beagleboard xM, we use one of unused uart pin for the reset of the USB3320. So USB3320 is always in reset mode, so no USB under the hub which means no USB host and no Ethernet. Please find in attachment a patch based on Govindraj.R patch from: http://www.spinics.net/lists/linux-omap/msg65427.html
Created attachment 72932 [details] Fix omap serial init on beagleboard (omap). Fix omap serial init on beagleboard to get the reset pin of USB hub (USB3320) as gpio and get the USB host ports and Ethernet in a running mode.
USB3320 is not a hub but a PHY. But, the problem is the same.
I tried 3.4-rc5 vanilla and it is fixed. It seems it has been fixed in omap_serial_init() function.