Well, let's see. Jailbreaking an iPhone is now considered legal in the US. Apple didn't want anyone to jailbreak it, people have and it is legal. This is no different. People DO pirate stuff on the iPhone once it is jailbroken, though for a lot of people that is not why. I personally jailbreak my iPhone so that I can tether my iPad to it. This was a function that was not allowed by Apple. Others do it so that they can use the phone on another network and so on.
Piracy is against the law and I am all for that. I know how I felt when they took the Other OS feature away. That was wrong. I don't care what excuse they used. It was wrong. For me it was the principal of paying for something that was advertised as a feature and then it being taken away after you purchased it. There were MANY other ways they could protect themselves from that hack - like Microsoft do with banning from xBox live. Stealing what you rightly paid for was not right.