But you didn't buy the rights to the software to do as you please, so no, technically you can't jailbreak it, and Apple certainly can tell you what to do with it.
If you want to replace the software with one entirely of your own work, you can do that too. But you don't have any right, legal or otherwise, to do whatever you please with Apple's software (or Adobe's, or Microsoft's, et al.).
Wrong. Once I've paid for something, it becomes mine to do with as I please, within the limits of the law - which isn't very clear as it is. I can change the software and reverse-engineer it, I can back it up to external media, and I can (if I choose to remove all traces of it from my computer) re-sell it, all without breaking any law. A EULA isn't a binding contract, and I've agreed to no terms by purchasing a product or installing software.
There is exactly zero chance of IP disappearing in the foreseeable future. The US economy, such as it is, is totally dependent on it for survival, as are the jobs of most people on this forum.
You can hand-wave all you want, I sure don't see any milkmen, blacksmiths, or ice delivery trucks any more. Did they try to sue their customers for buying a refrigerator or car? I'm sure they were upset about being put out of a job by newer tech too, but they had to adapt, or go bankrupt.
Patenting ideas only hurts the world, to the benefit of corporations who want to make money without producing any tangible products. The media would like you to believe otherwise, since they are owned by those same companies (and have obviously convinced you personally of the 'evils' of breaking digital restrictions). You make it sound like you want companies to have the right to put artificial restrictions on things you buy.
I'm sure that each of us on this forum is resourceful enough to see changes coming (like now with digital rights) and be somewhat prepared, or enough at least that we're not taken by complete surprise - how does that happen, that a Detroit auto worker had no idea that the American car industry is dying and all of a sudden is out of a job without any plan?
If the USA's economy is 'totally dependent' on IP for survival, as you say, then it will likely have some rough patches up ahead, because (most of) the rest of the civilized world is beginning to treat file sharing as it should be treated - casual copying that doesn't measurably hurt sales, and in most cases actually helps music/TV/movies/software gain exposure, especially indie stuff.
Reverse engineering and fixing products that are "defective by design", as the saying goes, is an honorable act, to the benefit of each user of that device, and the company that released said device shouldn't have any say over that. We are not here to obey the will of corporations.
On topic: my iPod Touch is running 2.0 happily (the *345 one), but as I reluctantly expected, the apps on offer are
mostly crap compared to what's available for the jailbreak community.