So I previously pondered the feasibility of running non-Apple/webapps on the iTouch (which I looked at again at the Northbrook Apple store last week, and I really like this little devices) and it looks iPhone hacking community is making progress:
Very late tonight (or early, depending on your timezone), we were able to decrypt the iPod Touch/iPhone 1.1.x ramdisks. We are proud to announce the md5 of the asr binary from the 1.1.1 iPhone image, as proof that we do indeed have access to it: 358bf0bd1f1024ed25fa69ced23dab90
As for the actual key, it's sure to pop up in the next few days, keep your eyes peeled.
It's been a long month with many distractions, but we are finally breathing a sigh of relief as we work towards the release our own iPod Touch jailbreak solution, as well as expediting the process of unbricking 1.1.1 phones that were renedered unable use their SIMs after running AnySIM on mobileOSX 1.0.2. Contrary to claims made by the so-called "elite" iPhone development group, we are indeed very dedicated to getting a free and workable solution out to the general public. At the very least, a baseband downgrader should be possible. We understand your frustration, and please don't think for a second that we've forgotten you.
We have been able to install many of the third-party iPhone applications working on the iPod Touch, and can confirm that Mail and Maps work great. Stay tuned for more info on how to add more Apple apps.
Here is the RSS Feed for the wiki so you can track progress..