These are all pretty general things that sound good on paper. But what about some specific things (Apps, etc.) that you think are amazing and def. worth the jailbreak? I'd like to understand before i do it, not vice versa.
cheers
Some of my favorite apps:
Backgrounder: Allows you to run apps in the background, which is great if you want to listen to audio from an app like Pandora while actually using your iPod for something else too
Kirikae, ProSwitcher, etc: Two of many available app switching programs, which let you switch among backgrounded apps after installing Backgrounder
SBSettings: The reason I originally jailbroke my iPod, this allows you to access a bunch of settings (turn WiFi on/off, adjust volume and brightness, kill processes and free up memory, etc) from an overlay that you can bring up in any app without disrupting what you were doing. Plugins to do a bunch of other stuff are available, but I haven't explored a ton of them. Unbelievably convenientfunctions that are only otherwise accessible with a trip to Settings.app can now be used without leaving Safari. As a bonus, lets you hide app icons from the home screen (good bye to Stocks and Voice Memos!).
YourTube: Lets you download videos from YouTube and store them on your device
Safari Download Manager: Adds download capability to Safari, so you can save that zip file or Word document on your iPod for later retrieval...or viewing using...
iFile: Filesystem browser that lets you store and view documents of all types, including those downloaded using the above two apps. A bit like FileMagnet, but you can access the entire iPod filesystem.
Emulators for a bunch of vintage video game systems (NES, SNES, GameBoy, Genesis, etc.), if you're into that sort of thing.
As mentioned before, utilities that let you customise practically every aspect of your iPod: wallpaper, icons, colors, lockscreen graphics, even change the word "iPod" in the status bar. Most of this stuff requires you to install Winterboard.
There are also a bunch of hacks that let you put more than four icons in the Dock, have more than four rows of icons in Springboard, etc.
A bunch of other stuff I haven't personally tried but have read good reviews about (LockScreenInfo, MyWi, etc). If you're interested, just Google "best jailbroken apps" and open the first few hits, and you should be able to get at least some idea of what you're in for.
The only real drawback (besides the extra hassle of reinstalling all your jailbroken stuff if you have to restore, and the "tethered" jailbreak if you have a 3G Touch) is that some of these apps drain your battery faster. And it's not always the ones you'd assumeRotation Inhibitor, of all things, caused the most battery drain on my Touch. If you're not afraid to experiment, go for it
How about the ability to save/view/edit documents, i.e Word/Excel offline? I haven't heard anybody mention these.
See iFile

Won't let you edit, but you can manage and view them. I'm sure there's something out there that would let you edit (other than the ones on the official App Store).