I'm kinda tired of waiting for the jailbreak for the 2nd gen and I'm perfectly happy with the iPod right now. So, should I upgrade mine to 2.2 and possibly suffer a little longer for the jailbreak, or don't do it at all
Why shouldn't you upgrade to 2.2?
It is a lot snappier than 2.1.1.
Now that 2.2 is out I doubt anyone will want to jailbreak 2.1.1 and will just go to 2.2; maybe 2.3 or 2.4 depending on when the 2G iPod touch is jailbroken.