There is now a way to downgrade a 1.1.1 iPhone to 1.0.2, which then re-opens it to jailbreaking. Over at Tuaw.com, someone posted in the thread (comment #27) that the procedure also worked for the iPod Touch, but gave absolutely no details (in other words, probably was making sh*t up.) http://www.tuaw.com/2007/09/29/breaking-reports-of-1-1-1-to-1-0-2-iphone-downgrades-trickling/ But...I think it's at least a possibility. And perhaps if you could restore the Touch to 1.0.2, then you could install the missing Apple apps, 3rd party apps, etc. What do you think?