I think the original reason/want/need for jailbreaking was because the iPod originally didn't have any app store to speak of?
Yep, nailed it. iOS 1.x didn't have an app store. I keep forgetting about that, since I've only used iOS 2.x and up.
I had a fairly recent jailbreak on my iPod (I think I had it on during 4.1; it wasn't long after I bought my Touch) and the lack of QC and number of ripoffs really turned me off to it. I tried putting emulators on the thing and despite the A4 being more than capable, I found that every emulator that I tried sucked (a
GameBoy emulator that I tried was laggy and unresponsive) and had a price tag associated with it. Most of the free games were about as complex as arcade-style calculator games. It almost seems like Cydia turned into a Winterboard (a piece of software used to customize how the iOS interface looks) store as of late. Oh, and most of the Winterboard themes on there suck, too.
I do really miss having my iPhone jailbroken, and if I didn't have so much data on it I would do it again in a heartbeat. I was able to get functional substitutes for the nice iOS 4 features (namely, multitasking and categories) under the much faster iOS 3 (this is a 3G, so 4.x hurts its poor electronic soul). More importantly, it seems like most of the quality Cydia apps are more geared toward phones.
LockInfo and
QuickReply are two fantastic pieces of software, and are well worth their price tag. However, considering the iPod is tethered to wi-fi, I don't see much of a purpose for putting LockInfo on it, and there's zero reason for using QuickReply.