It was stuck on the same screen as yours. I was able to get the phone to get past that by using Purplera1n again. Once I was able to get to the normal "desktop" of the phone, I could see that there was no WiFi, no 3G, no edge, no bluetooth. In settings, all those options were grayed out. I then went in and selected the erase all settings and content button and that made the phone a brick. The phone could not boot up, just apple logo for a few minutes, reboot, apple logo, reboot. There was no longer a restore mode after that.
Yes, the restore failed as soon as iTunes got done extracting whatever it does before it starts the actual restore. As soon as it would try to connect to the phone, it failed.