Part of this is due to over-the-top enthusiasm about each little fix and new version, that it will cure cancer, establish world peace, and get you a weekend alone with the supermodel of your choice.
The result is that word-of-mouth gets around, and so hundreds of people who have no clue about technical issues are flashing things they do not understand.
In the case of this Beta 3.1, as I type this, nandroid restore is re-installing 7.0-stable on my Nook, because I use the Nook to remind me about appointments, and when it is frozen (locked up), it doesn't do that.
That does not mean that the development is going wrong, in fact, it is labeled Beta in a Development Forum, and the purpose of the build is to find bugs.
However, earlier in the thread, someone who probably should only be running Stable asked "so is it okay to install this?". The answer to that question for anything other than Stable should be no. But someone answered "sure, go ahead, it's great". That answer leads to the results you observed.
I agree with this entirely. I am a noob at all this, but I can get around fairly well when it comes to doing stuff like this.
But, I am not going to flash any Beta stuff, as I would rather let the dev's and the really really knowledgeable folks do the testing etc for the devs feedback. (also cos I have 4 young kids and just dont have the time to be testing things etc)
For now, I will sit back, read these threads, and when the smoke has cleared and its ready to rock as a stable....then I'll jump on it! (cant wait!)