Jailbreaking is the absolute worst thing you could do to your Apple Product. I highly suggest not doing it and staying within the warranty.
On the subject of "fake iPhone APP's on the iPod Touch all I can ask is "why?" Why would you want APP's that do not work or serve any purpose on the iPod Touch? They would simply take up space on your Hard Drive and increase the already high chance of glitches and bugs on your hacked device...
Seriously. It's no where near the worst thing you can do, probably one of the best things. The worst thing would be to set it alight, and post it in an old fogies home

I'm not sure if he cares about what you think, and there's no need to start attacking him if he wants to do something it HIS iPod. you don't want to Jailbreak, fine, don't do it. But leave us alone whilst your at it
Benguitar, if you don't like people doing what they like with something that they bought and own, get out of the hacks forum then.
He's obviously already Jailbroken, so don't tell him not to. There's nothing wrong with it legally (despite the claims from Apple) or morally. There's nothing "disrespectful" it modifying a device you own.
You're not helping this person in anyway, and I don't think he's going to be interested in your thoughts about Jailbreaking.
OP, the only thing I can think of is getting some "Blank Icons" from Cydia, and changing the icon file (via SSH) to something like the phone app image from an iPhone. Then repeat with every iPhone only app you want to appear on your iPod. However, they wont be functional in anyway shape or form
