An end to the questions: Yes, Jailbreaking is illegal.

how is it illegal ?

you paid for this product, so you own it , you can do as you please with it, if you drive your car over it accidentally , would apple give you a new one ?? no.. they even want you to pay extra $20 for some update the newer models have and they intentionally left out so they can gouge the consumers for more money a few months later. shame shame shame on apple greedy people

Just checked with my boss

Jailbreaking = not illegal
Getting Jan apps for free = illegal

Jailbreaking = Voids warrenty, apple wont repair/replace parts or battery
Jan apps = stealing = prison/Fine/Communitity service hours depending on what the law says

And your boss's qualifications in this area...?

I mean, any Tom, Dick or Harry could come up with that.

The EULA says nothing on the topic of jailbreaking.

What is does say is:

Which means:
If you mess with our software, that we make, you get in trouble. Also don't try to find out any codes in our software.
This rule applies to some jailbreakers, because we sometimes manipulate software to get features like skins and other custom options.
However, this mainly is targeted at the developers, because they are the ones who actually try to manipulate the software, and be able to download third party's.
Also this completely loopholes the people on soft upgrades because technically they are not on Apple's software. And, as is stated in the EULA, you own the media the software is contained on, but since you aren't using licensed software, you are completely apple independent.

(c) Except as and only to the extent permitted by applicable law, or by licensing terms governing use of open-sourced components included with the iPod touch Software, you may not copy, decompile, reverse engineer, disassemble, attempt to derive the source code of, decrypt, modify, or create derivative works of the iPod touch Software, iPod touch Software Updates, or any part thereof. Any attempt to do so is a violation of the rights of Apple and its licensor's of the iPod touch Software and iPod touch Software Updates. If you breach this restriction, you may be subject to prosecution and damages.

This applies to the developers. This means that you can't make the soft upgrades. It also says that you can't try to manage ways of jailbreaking. However it says nothing about possessing a jailbroken Ipod, or a soft upgrade.

in my opinion WHO GIVES A SHlT

Crashing your car into another is a illegal.

lol...+rep

there was a great quote by someone on this forum, i think it was unclechuckie:

i paid for an ipod touch, ill use it how i damn well like

Yu don't even know why it's great, do you? Nope.

yup He does