I think we can call the methodology flawed. If it was intentional, it was fraud. Intentionality has yet to be demonstrated. In the choice of data and methods.
The manner in which the primary components method was used in MBH98 and several other reconstructions built by the Hockey Team tends to create hockey stick-shaped curves out of red noise (not random noise).
Another problem with the Hockey Team reconstructions is an over-reliance on tree ring data. In the case of MBH98, Norther California Bristlecone pines were very heavily weighted. These particular tree ring chronologies seemed to indicate strong 20th century warming. The problem was that the instrumental temperature records in that area did not reflect such warming. The original authors of those chronologies (Graybill & Idso, 1993) had concluded that the cause was CO2 fertilization. Koutavas, 2008 provided an excellent example CO2 fertilization here:
http://www.co2science.org/articles/V11/N49/Koutavas2008small.gif
The Hockey Sticks tend to filter out the low frequency component of the climate "signal." Reconstructions which honor the low frequency component don't look ominous and tend to reflect the patterns seen in ice & sediment core d18O temperature reconstructions. Moberg did a far better job in honoring the low frequency components of the climate signal. Reconstructions like these indicate a far more variable climate over the last 2,000 years than the “Hockey Sticks” do. Moberg also shows that the warm up from the Little Ice Age began in 1600, 260 years before CO2 levels started to rise.
As can be seen below, geologically consistent reconstructions like Moberg and Esper are in far better agreement with “direct” paleotemperature measurements, like Alley’s ice core reconstruction for Central Greenland…
http://i90.photobucket.com/albums/k247/dhm1353/Climate%20Change/Moberg_Mann_Esper_Alley.png
From Esper, et al., 2005...
"So, what would it mean, if the reconstructions indicate a larger (Esper et al., 2002; Pollack and
Smerdon, 2004; Moberg et al., 2005) or smaller (Jones et al., 1998; Mann et al., 1999) temperature amplitude? We suggest that the former situation, i.e. enhanced variability during pre-industrial times, would result in a redistribution of weight towards the role of natural factors in forcing temperature changes, thereby relatively devaluing the impact of anthropogenic emissions
and affecting future predicted scenarios. If that turns out to be the case, agreements such as the Kyoto protocol that intend to reduce emissions of anthropogenic greenhouse gases, would be less effective than thought."
Now... "Mike's Nature Trick" is 100% fraudulent, irrespective of the Penn State & UEA whitewashes. Substituting instrumental temperature data for inconvenient tree ring temperature data, while asserting the validity of the pre-instrumental tree ring temperatures is scientific fraud.