iPhone, iPod Touch 1.1.1 Firmwares Jailbroken
vertigoCiel writes "Hackers Niacin and Dre have recently gained full read and write access to the filesystems of both the iPhone and the iPod Touch. The Jailbreak exploits a vulnerability in Safari's TIFF library to execute the necessary code when the specially crafted image is loaded. Access can then be permanently sustained by modifying the fstab file with iPhuc"
I wonder if Apple are going to keep playing "cat and mouse", and try to bring legal action to bear against these "vile hackers", or if they're going to take the hint that you can't stop us all? Clearly there's a demand for unlocked iPhones.
Seven puppies were harmed during the making of this post.
iphucing love the name
So, I live in the Netherlands, and I want an iPhone. What does this mean for me? Does rw filesystem access imply that I can break whatever part of the phone it is that allows me to use other SIM cards? Or does it just help application developers? Is there any place/website I can just go to and find out the "current status" of what I can do with specific firmware revision? Without digging through the developer forums, or idling in IRC asking stupid questions?
Apparently they used the same vulnerability to hack the PSP.
Hackers win again!! When Apple will learn?
Now that the hack is being posted all over the in-tar-web, Apple is sure to release a patch to brick all cracked devices.
The game.
Wouldn't it be easier to buy an phone/mp3 player that isn't crippled?
When will you learn? Apple knows it will never stop hackers 100%. If they make it risky and a pain, then these hacks will not be widely applied. If less than 1% of their customer base hack their phone, then AT&T is happy. Apple gets lucrative licensing fees and their stock price goes up. This is the bottom line of ALL publicly owned companies.
Kudos to the hackers. But kudos also to Apple for their bricking strategy. Spread FUD, increase shareholder wealth.
See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
according to the article since the TIFF exploit can be patched. I understand it's a "cat and mouse game", but I was wondering why there can't be a more permanent solution, like creating an image that can be restored using the iTunes Restore function.
This is great news and I'd like to know how do you get started learning how to hack the iPhone? I found stuff that explains how the jail breaking works, but not how it was discovered or what was tried, etc. Blogs, logs, etc would be cool.
I bet Sony and Apple both have an intern whose sole job it is to churn out new FW for the PSP and iPhone/Touches. Ocasionally they will slip in a few bug fixes and patches for security holes. Other than that they will end up releasing one update a week with the hackers always a week behind.
I have excellent Karma and I am not afraid to Troll it.
With an iPhone, i now have a full (not the wap garbage) web browser, something that knows how to seek in a mp3/podcast, the ability to do E-Mail, and most of the other things that Nokia didn't get right over the years. I'd looked at other phones, such as the E60, etc... to cover me but they still have serious issues. The polish that apple brings to this space gets rid of all the rough edges. I now have a different set of issues with my phone, but the utility of the current device (in my life) makes those mostly small things. Of course i'd love to be able to ssh from the phone, but would you really want to type your password/passphrase 90 times on the touch keyboard? (because hopefully you're not using a word in the dictionary? ;) Running vi would be a massive pain as well.
The issues with the iPhone at least leave the promise of them getting fixed in a newer release that *I* can install at home instead of shipping the phone to a far away service center and who knows when they will update it. I can also file bug reports that get reponses at my hardware/software provider. Much better than the old status-quo for cellular phones. Do I wish it was better, of course! Do I hope that the double activation goes away? Yes! Do I have faith that someone will find a workaround, even if it is via JTAG or some other creative solution set? Yes, it's a large enough target. It's also large enough that apple can't ignore it. Me? I'm watching what's going on with the french iPhone launch.
This crack sounds great! Um, could someone explain to me why it is useful? Sorry, I guess I am out of the iStuff loop...
Am I the only person here who reads that there is a vulnerability in the way iPhone handles TIFF files who immediately thinks that this is a massive security problem that needs to be addressed immediately? Sure, a handful of people will make use of this to open up their iPhone. Good for you. However, for everyone else, this is just a hole waiting to be exploited by someone posting a malicious TIFF onto a website or in an email and luring the iPhone users to view the TIFF causing havoc.
Reposted from: http://www.iphonealley.com/news/iphone-v1-1-1-jailbreak-apptapp-installation-guide
.ipsw if it comes as a .zip ./iphuc and hit return
Jailbreaking Steps
1. Sync and pray
1. Sync your iPhone with iTunes. You'll be losing all of your information, so it's a good idea to back up
2. Downgrade to v1.0.2
1. Hold down the Sleep/Wake and Home buttons at the same time for about 10 seconds. The phone should shut down.
2. When the phone shuts down, release the Sleep/Wake button but continue holding Home
3. Wait until iTunes recognizes the iPhone. The screen will appear to be off, but iTunes will eventually recognize the iPhone. When it does, let go.
4. A message will appear telling you to restore. Click OK
5. Using your favorite browser, download the v1.0.2 software from this location. You may need to rename to
6. Back in iTunes, hold Option on the Mac or Shift on the PC while clicking Restore. Navigate to the software you downloaded and select it.
7. The phone will restore, but it will fail. This is normal.
8. Your iPhone should show a yellow triangle. Run Nullriver's AppTapp. It should bring you back to the Activation step on the phone and show an error in the application. Disregard the error.
9. Run AppTapp again and it should succeed.
10. If not using an AT&T SIM, use INdependence to activate your iPhone. That's it!
3. Create Symlink
1. If you haven't already, install Nullriver's AppTapp
2. Go to http://conceitedsoftware.com/iphone/beta in iPhone's Safari. Tap "Yes" to add to Installer
3. Plug iPhone in and open iTunes. Make sure it's recognized before proceeding
4. Using Installer, install "Trip1Prepz" located under "System"
4. Upgrade to v1.1.1
1. In iTunes click "Upgrade" and not Restore. Restoring will ruin our progress.
2. Once upgraded to 1.1.1, close iTunes
5. Jailbreak
1. Download iPHUC and friends from Rapidshare
2. Extract the contents so that iphuc, fstab, and iphonefs are all on the Desktop
3. If you don't have libreadline, download it and extract the zip to your Macintosh HD
4. Open Terminal.app located in Applications>Utilities
5. Type cd ~/Desktop and hit return
6. Type
7. Type getfile
Who said total nerds weren't funny? It's a wonder with comedy like this more pocket protector types don't get laid.
Well, according to the name of the program, at least one does...
This guy's the limit!
... so what worries me (and the article doesn't say) is: Does this vulnerability affect the desktop version of Safari as well, or (as someone else suggested) does the iPhone firmware merely have an out of date version of the TIFF library?
So let me get this straight: if an image handling vulnerability is in IE or Firefox, it's deplorable, but if it's in an iPhone, it's the greatest thing ever?
If you cretins don't like the iPhone's contract terms, DON'T BUY ONE.
There is no plural form. There is no trailing "s".
Or "scientists think that...".
Bot Assisted Blogging
Future versions are promised to include a camera as well. In the meantime one may connect an USB camera although it is not an elegant solution.
But a camera is not on the list of wanted features for me. I'll buy myself such Neo for Christmas (hope it'll be ready till then).
The people behind openmoco are really awesome - they were willing to give up WLAN because there were no chipsets with open drivers. Luckily they have found aetheros chipset afterwards, so 1973 will support wireless networking.
Such approach is very rare in the times of profit-at-all-cost companies. They have earned my respect by having principles.
In the Soviet Union the firmware is under legal obligation to maintain you for 5 years.
In South Korea only old people maintain their firmware.
I didn't know Apple had a sex-toy product line.
...that Firmwares Jailbroken is the name of the Finnish hacker who cracked the iPod?
Apple's firmware division is not in charge of Gundam.
I didn't see anything that said otherwise, but doesn't this mean that someone could get root on your iPhone just by visiting a website with a special TIFF?
"If you cretins don't like the iPhone's contract terms, DON'T BUY ONE."
Why does it bother you that people are modifying their own property? I really don't understand:'
a) why does it bother you that people are hacking their own phone?
b) why do you think people can't manipulate their own property?
c) why does modifying your own property make you a "cretin"?
d) do you think that when apple does bad things, it's usually because their goals are good?
Since the begining of time (roughly 1981) users have been hacking Apple products. If you wanted lower case letters on an Apple II you had to solder in an extra wire on the keyboard. This voided the warranty but never seemed to cause any real-world problems. In the past Apple has tolerated this sort of activity; only a limited number of people did it and it and Apple didn't suffer. The difference this time around is that Apple is trampling all over this unspoken arrangement. Instead of tolerating the small number of people who want to mess with their iPhone so they can use TMobile instead of ATT (now tell me again why you want to do that?) Apple has decided to make a Federal case out of it.
They are perfectly within their rights to do so, but I don't think the benefit will make up for the damage to their reputation.
Hackers accessing the NSA mainframe is a "massive security problem". My iPhone hardly qualifies as any sort of security problem, no matter how unsecure it may be.
If the iPhone doesn't have hard segregation between the air component and the application space there is indeed one argument that is valid: providers are understandable very worried about anyone modding the air interface to start hacking the phone carrier networks.
:-).
If so it betrays quite a lot of nervousness about the robustness of false signal rejection, and 2600 would ride again in a more advanced form (come to think of it, I suddenly realised that 'talk' is back amongst us, we just call it IM now, but I digress
However, that is then a design weakness (IMHO) and I wonder how Apple managed to swing that then in the light of the money they're currently extracting from AT&T.
Anyone any idea how the iPhone separates the two, or maybe how it doesn't? Could be quite an oopsie..
Yeah, that's bullshit. The most vocal shareholders usually value short-term gain. A corporation would be stupid to give in to that, but it seems what Apple is doing lately. Apple stayed alive next to Windows because they focused on the user. Apple is the number one MP3 seller because their product is better. Everyone wants an iPhone because the user experience blows everything else away.
In other words, Apple is successful because they give their customers what the customers want.
Recently, they have started to do small-ish things that annoy their customers while pleasing other corporations, or simply helping their own bottom line. Not allowing you to use music you legally own as ringtones. Selling special cables for video out on iPods. Not selling the iPhone unlocked. Not allowing third-party native iPhone apps.
These are crappy decisions. Yes, they make them money short-term. Yes, they make the shareholders happy. No, they are not good for the company, because they destroy the very thing that has allowed Apple to remain alive against Microsoft, and become successful against many other companies: Their focus on their customers.
So screw the shareholders. If Apple wants to remain the success that it is, it needs to value the customer, not the shareholder. Success brings a good stock price, not vice versa.
You must have Verizon or US Cellular, or some similar "fuck the customer" phone. I went to Cingular (now AT&T) because I could get an unlocked GSM phone. I got the Cing 8525, 'cause it was cheap and easily unlocked, thanks to a very active HTC hacking community. It's been just about perfect - better than any phone I've ever owned from a controlled source. BT works, Wifi works, GSM/3G/UTMwhatever works, and even with IE I can chose the mobile or standard web pages (though I never use mobile on gprs - to damned slow for anything). Opera works even better.
The one think I really wish I could get is a WM6 that was intended for fingers instead of a stylus. In that way, the iPhone is awesome. Otherwise, I really like the 8525 - I get to use my scheduler, GPS software, and the like, and it works well.
Is it just my observation, or are there way too many stupid people in the world?
The problem is that they don't completely re-flash the firmware. If you have a 1.0.2 unlocked iPhone, the 1.1.1 upgrade will break your baseband and prevent you from making calls or using wi-fi. If they completely reflashed the baseband, that would not be an issue.
The TIFF image used to exploit Safari can be viewed safely on non-Safari browsers here.
It turns out that performing a "Jailbreak" on your iPhone is a bit like performing an exorcism.
If you want them to "take the hint" then stop buying their locked-down, over-priced, eye-candy and support companies that make more open smart phones. By the way, whatever happened to the much-lauded Apple security? Could it be that the only reason MacOS wasn't hacked was that no one could be bothered hacking a unpopular system and now that Apple has something hackers are interested in there are security holes-a-plenty?
Support Right To Repair Legislation.
For some reason I just giggled like a schoolgirl when I read the article summary.
Yay for determination, passion and skill!
These folks remind me that there are still good, smart driven engineers out there, not just dullards and drones.
Why oh why don't the PHBs ever get this???
Nothing is inexplicable; only unexplained -Tom Baker, Doctor Who
I had a first gen iPhone with 1.0.2 firmware, T-Mobile SIM and some apps that I find useful. After looking at the new Blackberry 8320 Curve from T-Mobile I gave the iPhone to my wife who is a very limited cell phone user and got the 8320 for myself. She is happy with the ease and niceties of using the iPhone and I find the 8320 the best, most usable cell phone ever made.
For 10$ a month less than AT&T I get free Wi-Fi calling, more minutes (600), Family Plan, Bluetooth modem for on-the-go internet access with acceptable speeds, push email, *and* third party apps. A business user could not care less about the iPhone.
I want a media player that can do Ogg, and AVI files and have the whole eight gigs in the file system, I am willing to make a web site raise money, whatever. I will continue to beat a dead horse and ask for Linux or a great version of BSD on the iPhone.
To see a few of my Android apps goto: www.hartwired.com
The iPhone is not crippled, it works quite well as-is. Some would like to extend the iPhone beyond where Apple has taken it, but that is a different matter.
I would argue that many other phones that allow third party apps do so precisely because they are crippled, key features like mail clients and browsers needing to be replaced because the apps shipping on the device are substandard.
It's the lack of crippling that makes the iPhone such an appealing base to start from.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Just to clarify, the Google Maps client on the iPhone wasn't written by Google, it's an Apple app. At the All Things Digital conference when Mossberg interviewed Jobs and Gates, Jobs mentioned how impressed the Google guys were with the Maps client that Apple had developed.
As has been pointed out, any contract term, EULA, et cetera that did specify the iPhone must not be hacked in order to allow it to be used with other carriers would not be valid nor enforcable, since it is the legal right of the owner of a phone to unlock it to use whatever carrier they choose. It is perfectly reasonable for folks to want to hack the iPhone, regardless of whatever your myopic view of it may be.
Completely aside from that, did you, with your uncreative little troll heart somehow wander onto Slashdot by accident? There are many thriving communities who spend their time hacking away on various pieces of technology to make them more interesting/useful/cool. And there is, unsurprisingly, a lot of overlap between those communities, and the folk here.
Sometimes half the fun of having a cool gizmo is to see what else you can do to make it even more cool and useful. Simply because you personally lack the interest, will, creativity, or skills to add your own improvements to your tools, doesn't mean the rest of us are in any way so lacking, nor are we restricted in our views, abilities, or actions merely because you happen to either have a bug up your butt.
We expect the article is correct, and that said vulnerability will indeed be ephemeral. In the meantime, yes, by all means, we consider it a useful exploit for this particular purpose, even while at the same time simultaneously recognizing that it is something that should be remedied from a more general browser security standpoint. That's the very reason, in fact, that we expect it to be fleeting. Some of us, apparently unlike trolls, are more than capable of simultaneously processing two different viewpoints about the exact same thing that may, superficially, seem to conflict. :)
who is wondering about the potential of iphone botnets? granted, its darwin. but it has been lack of user base, and not impregnability which has protected OS X so far.
As has been pointed out, any contract term, EULA, et cetera that did specify the iPhone must not be hacked in order to allow it to be used with other carriers
:)
The problem with the iPhone seems to be that the software radio is vulnerable to being exploited if you can get root on the iPhone, which may violate FCC rules and certainly makes carriers nervous. Originally, articles claimed that the software radio was driven directly from an OS X driver, but it seems from comments elsewhere that you still have to use AT commands to talk to the cellphone part of the device. I have not seen any clarification as to whether locking the iPhone is necessary for FCC certification or not... obviously if the software radio is under direct control of an OSX driver it almost certainly would be.
I have asked for clarification on this point before but answer came there none.
In any case, if that point is true, then a contract term that required the iPhone software not be modified to continue to use the iPhone as a certified device would probably be enforceable... but if you could modify it without becoming root you'd be home free.
Otherwise, if you look closely at the specs and actually compare the units in your hand, you will find the iPhone to be a much "better featured phone" than the N95.
The N95 is clunky and poorly assembled, it has less battery life, less storage, and the apps it has are hardly useable and poorly integrated.
To really decide, try browsing the web on each phone. I will bet it will not be the N95 you choose.
If their hack depends on a "specially-crafted" TIFF, then that's a bug, and Apple is under an obligation to close that hole. How would you like it if a "specially-crafted TIFF" was used to steal all your personal information?
Open the SDK, Apple. Allow the legal unlocking, and make it easy for people to write apps and then sell them for them on iTunes. Stop being jerks. You make money to the extent that you're not jerks.
But hacking is hacking, and I don't want any vulnerabilities on my iPhone, even if it's just "good guys" who are using them.
Well, if it's an exploit in Firefox it'll be fixed within 24 hours, and /. will just make that an update to the article.
/. about that.
If it's in IE it'll take 2-6 weeks and effect Windows Media Player, Real Player, and seven Windows-specific Firefox extensions... and when they're temporarily disabled by a Firefox update you'll get a second front page story in
If it's an image handling vulnerability in Safari then according to half the OSS community it's nothing to worry about, and according to the other half it's what you deserve for supping with the devil, and Unsanity will come out with a patch it within 24 hours.
Since it's in the iPhone there will be another story when the security alert comes out, another when the patch comes out, another when the patch bricks someone's iPhone, and another when it shows up in Dilbert.
If it's in Opera nobody will ever hear about it.
"As has been pointed out, any contract term, EULA, et cetera that did specify the iPhone must not be hacked in order to allow it to be used with other carriers would not be valid nor enforcable, since it is the legal right of the owner of a phone to unlock it to use whatever carrier they choose. It is perfectly reasonable for folks to want to hack the iPhone, regardless of whatever your myopic view of it may be."
You really have no clue what this debate is about do you?
Hint: it doesn't have anything to do with what you posted there, and not one person has tried to make the argument you are suggesting has been made.
I only go to buffets for the unlimited soft serve.
Slashdot Burying Stories About Slashdot Media Owned
This implies that you have to downgrade to get a version with the hole in it.
No mod points at the moment, or I'd do it myself. He's absolutely right. Apple WILL patch bugs and security loopholes, and I for one want them to do so.
Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
They are under no such obligation to keep the iPod touch locked up tighter than a virgin. Yet they do anyway.
+++ATH0
If you want an open phone, there are several on the market or very close to market that will work MUCH better and the companies will support you in creating the apps.
There is nothing on the market that works better than the iPhone. The iPhone is the ONLY smartphone that has really gotten the equation right. It is touch-based, UNIX-based, incredibly flexible, and incredibly easy to use. Windows Mobile is still pen-based and crashy. Palm is dying, pen-based, and even crashier. Symbian is now a closed platform. OpenMoko will never get off the ground. There are no other extant Linux-based phones that allow any useful access to the OS (inclusive of the RAZR 2, which also has no WiFi). The gPhone will almost certainly not be a consumer-empowering platform. iPhone is it, boys and girls.
+++ATH0
I just replaced a broken 8525 with an iPhone and I'd never consider going back. The iPhone is dramatically smaller, easier to hold, better built, easier to use and has much better designed and integrated applications. Are there features I'd like on the iPhone that were on the 8525? Yes, but not enough to make switching worthwhile. The iPhone is the only smartphone I've used that doesn't feel like a hurriedly slapped together piece of crap. That being said, I'd love to be able to run third party aps.
I like my beverages with warning labels!
You could skip all this pointless cat'n'mouse cracker wankery by just using a real smart phone (Symbian/Windows/Palm) where installing pretty much any application you want take a couple of clicks, and there are more SDKs for it than you can shake many sticks at.,
Da Blog
This just goes to show you that the more widespread and popular something is, the more likely it's going to get hacked (whether by the owner, or an outside party) to do something for which it was not originally intended. Mac owners who feel secure because they have Macs should take note of the fact that Apple's platforms do in fact contain exploitable flaws.
BeauHD. Worst editor since kdawson.
It just works!(TM)
They say that as long as you don't cite specific sources, you can make up any old assertion and pass it off as fact.
"The Mac community today stated that their rabid, unquestioning support of Apple was due to a suicidally loyal fanbase of OS X zealots, and not, as some outsiders previously thought, due to the solid operating system, value-adding iLife software and great laptop range."
"According to the PC community, Windows Vista is actually the world's most sophisticated practical joke, which we'll all get on April 1, 2008 when all Vista PCs in the world start flashing up pictures of tubgirl every 30th of a second before delivering all user data to Microsoft over an unencrypted connection."
"'Linux isn't going anywhere and we're abandoning all versions immediately,' the Linux community stated yesterday. 'We've finally realised we're never going to catch up with Windows or OS X, and that we've been fooling ourselves all along' said a spokes-penguin who asked not to be identified. 'We're all going to give this Amiga thing another go, we think we can make it work'"
"Government officials today said that the whole Iraq thing was a double-dog dare that got out of hand, and expressed great concerns about the escalation of a dog dare to a double-dog dare regarding Iran."
"UN insiders revealed that the current leader, Ban Ki Moon, is actually a sock puppet from a children's television show in Asia. 'Banky' as he is known, likes to draw pictures on cartridge paper and make animals out of toilet rolls and pipe cleaners. He was voted Korea's most popular children's entertainer four years in a row before accepting the job of entertaining the children of the previous UN leadership cicrle. Due to a paperwork error, 'Banky' Moon was nominated for leadership of the entire UN and since no-one wanted a Western nation to run it, the world's countries voted him in as the least hated nominee."
"People who know popular Slashdot identity MrHanky have admitted their irritation in being used in unsubstantiated quotes made by him, and wish he'd put their names in his posts or at least link to their quotes as proof. MrHanky has so far remained silent on the issue, leading some people to question his motives for doing so."
Hey! This is fun!
This is great that someone keeps hacking Apple's firmware. I like the idea of people hacking Apple's firmware, but I don't like the idea of people complaining every time Apple voids their warranty for it. It takes time and money for Apple to repair or send you a new
iPod or iPhone. However Apple shouldn't brick their iPhone or only limit it to AT&T. This stuff has been in the news a lot lately. So be careful when you're hacking these things. I honestly hate how Apple prevents people from changing things in their firmware but if you think about it, it's for your own good and to save Apple time and money from the warranties.
A good solution to this problem for Apple is to allow firmware patches. This however would require them to have open source jukebox firmware. If you can find a better solution to this, please post. Until a good idea is found that allows hacks and warranties, I'm going to listen to my Rockbox Enabled iPod.
PS. I only use Rockbox because I don't much care about my iPod Video. Although it is the center of my life, I can just buy another one.
Please visit http://www.mederbil.com/ i7, GTX 275, 4 1TB Caviar Green in RAID 0+1 array, EVGA X58 3X SLI Board, Silver
What's Apple's excuse for locking up the iPod Touch...?
With the iPhone it was apparently part of the contract they signed with AT&T, but with the iPod Touch, Apple has NO fucking excuse.
IMHO: nobody has the right to sell me a gadget and tell me what to do with it after I bought it. It's my gadget now, and if I want to use it to do something illegal, be it mount "lasers" on sharks or take down the whole Cingular's West Coast network, is my problem and my responsability.
And, for the record, I have a Mythbuntu-loaded AppleTV and a Rockbox-loaded iPod.
It's better to be the foot on the boot than the face on the pavement. ~~ tkx Kadin2048
I have, and I'm married!! :-)
Certainly, I do. I've also been keeping an eye on the last several similar discussions.
Clearly, though, you do have some confusion about it...
Apple's contract with AT&T as an exclusive carrier is not binding upon purchasers of the iPhone. They have the legal right to hack the iPhone to use alternative carries if they choose. That IS one of the reasons folks have been hacking the iPhone. So it is relevant. And, yes, that has been brought up.
I also addressed the apparently ambivalent response from folks on Slashdot about the current method being a browser exploit that's likely to be patched soon, and why within this story it has generally been viewed positively, rather than negatively.
If you're having problems keeping up, then perhaps you should be the one rereading this, and other related threads.
Where I live a Mac Mini is not really accessible, and an AppleTV was relatively cheap (EUR 300) last time I went to Europe. It's a nice machine, pretty, and silent ... (my SKY+ decoder/DVR makes much more noise) and MythTV is better (IMHO) then the original firmware, even with hacks (nitoTV is a nice hack, thou). The 1080p HDMI output is nice, too, and matches my current TV set. So, for me, it was worth it.
It's better to be the foot on the boot than the face on the pavement. ~~ tkx Kadin2048
What's Apple's excuse for locking up the iPod Touch...?
They didn't want to maintain two different software inventories. They also don't want unrestricted iPod software development because they don't want iPod users using other company's DRM. There's actually a good reason for that, and there's a "social good" argument for it as well... unless you're on the side of the RIAA in the DRM debate.
First, the "social good" reason. If people can run arbitrary software on the iPod, they can run software using anyone's DRM scheme. This makes the use of DRM more convenient, and decreases the social opposition to DRM. Apple has been opposed to DRM from the start... Jobs is on record from the very opening of the iTunes music store as saying that this kind of DRM doesn't work, and that everyone (including the artists) would be better off without it.
Second, the "private good" reason. Apple's use of DRM the way the music industry uses it is almost entirely defensive... and it's defending against *Windows*. If people can run arbitrary software on the iPod, it means that iPod users running Windows will have an advantage over iPod users running OSX, since the music stores that work with these third party DRM schemes don't work on OSX. This has the potential of significantly hurting their market share. To complicate this, Microsoft uses the "secure audio path" and the related DRM technologies that have been part of Windows Media Player since WMP9 as a marketing tool to promote their proprietary DRM over Apple's proprietary DRM (don't bring up non-proprietary DRM... non-proprietary DRM can not be used for what the RIAA and the labels want). Apple is not going to be able to get support for the music stores using Microsoft's formats on OSX without making the same kind of restrictions in the OSX kernel that Microsoft has made in the Vista kernel... even if Microsoft is willing to license the technology to them at all.
Which brings things back to a "social good" issue again.
So... the question is not why they locked up the iPod Touch, it's what they do now.
Over the short term, the inventory issues are likely to make them simply treat the two devices as versions of the same device, with the same software and restrictions.
Over the long term, if they manage to wean enough labels off DRM, they won't have anything more than inventory control keeping the iPod locked, and they're unlikely to care about that any more than they care about the AppleTV being cracked. And weaning the labels off DRM is one for the good guys.
So I gotta say, I've got mixed feelings over the whole thing.