What Exactly is Jailbreaking?
Jailbreaking is simply breaking out of the "jail" of Apple and doing whatever you want with your device. Jailbreaking allows you do have FULL control of your iPod Touch. You can do many things that Apple doesn't allow.One thing is to download apps that Apple did not approve of. Another is to install themes on your device to make it look a lot cooler. Install tweaks so you can have 5 icons on your dock or put a folder in a folder. You can basically change everything on your device to the way you want it to be. (a.k.a full customization) Here are some screenshots of a jailbroken iPod touch.
Wow. Those devices have a lot of customization. You can make your device like that too-- and even better!All these devices are jailbroken, and they changed their device's features through jailbreaking.
Okay, but are there any downsides?
The answer is yes. The major downside is that you lose your warranty with Apple. Other minor downsides include decrease in battery life, crashing device and apps, and speed might decrease.The worst thing that could happen is that your device becomes "bricked" or completely unusable. If your device gets screwed up because of jailbreaking, don't blame me.
Overall, you should jailbreak. There are more advantages than disadvantages.
Just to clear things up, jailbreaking is legal in the US. So you don't have to worry about that.
Are you convinced? Go to How to Jailbreak.
Screenshots from http://www.gadgetsdna.com/best-cydia-apps-for-jailbroken-iphone-ipad-ipod-touch/7076/ http://www.addictivetips.com/mobile/top-6-winterboard-themes-for-jailbroken-iphone/