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Thinking of hacking your new iPod Touch or iPhone to install native apps on it that Apple didn't? Well, Apple won't care, really. Apple's Greg Joswiak spoke about the issue. He said that Apple "will not write malicious code to overwrite applications", however, Apple will not be held responsible if an update does remove the capabilities offered by a non-official application.
Good news, and a good move on Apple's part. This way users (who know what they are doing) can get what they want on their iPod Touch, or more importantly the iPhone.
If I remember correctly, they did the same with the AppleTV when hacks first started to appear for it. They go with a "its your machine, do what you want with it" approach.
...They go with a "its your machine, do what you want with it" approach.
... as long as they didn't void any warranties.
If they don't mind, why don't they release an SDK?
Because they don't want EVERYONE doing it...
Well, it's because they can't do anything about it. lol
Well I think it's a better way to stand on situation. Apple don't want to admit that there is little to be done to stop these things, but they don't also want to promote or support people doing it so. Neutral stand gives Apple a safe spot in eyes of both hacker community and regular users.
Giving out SDK means that Apple have on walk to thin wire with future iPhone updates, making sure that it won't break official third-party apps. So you do it on your own risk, we won't support it but we won't intentionally break it also. All in all, this stand is good for all. Gives hackers a little more breathing room with their ventures and saves apple also added efforts to accommodate and support in future updates.
And if some 3rd app does break down in any iPhone update, Apple can still wash theirs hands off it (even if it's done intentionally). Now that's a clever one. 
They will not try to block homebrew totally but maybe to block the AT&T bypass hack and everything that relies to activation. But since this uses low level code and all I doubt then can block it permanently.
Maybe Apple just learnt from Sony's PSP example with custom firmwares and the pandora battery hacked (showing whan hackers can do just to show sony they should have given homebrew)
Underground community can be sometimes good. Also taking Sony's example, after years of updates (most of them useless and security patchs) in the lastest they included theme support (that could only be done with an hacked psp but everyone wanted it) and listening to music while looking at your photos (ok, no comment on this one ...) etc ...
But the lastest statement just says "We MAY break it intentionally but we decline any responsability so even if it is intentional you can't proove it coz we will say "look there it's written Apple will not be held responsible if an update does remove the capabilities offered by a non-official application you can't blame us ! kthxbye"
That's all, but that clever for Apple not to get the hackers angry 
how is AT&T reacting to this decision?
They never said it's ok so if you're going to report on something, report it properly.
Apple said they PROBABLY won't BREAK the hacks on purpose but it is LIKELY to happen.
The title is more than misleading.
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