1. They give us a software development kit and acknowledge reality (30% chance)
2. They pretend that this is as good as they can do, tell AT&T "Well, we tried", shrug, and we get on with business as usual (40%)
3. They choose to continue the cat&mouse game, trying to lock us out and succeeding for a week or two per iteration. Yet in the meantime we always have 1.0.2 and now, apparently, 1.1.1 to work with. (30%).
If they choose to go with 3, it's annoying but not insurmountable. Unless they decide to get really nasty about it and use (mumblesnarf grumbly naganaga). Which would suck. But we'd _still_ have a good version to work from. Taking that thought a bit further - 1.0.2 is _completely_ open. Worst case, smart people get into 1.1.1 and friends, and back-port the good parts (double-tap home button for instance) to 1.0.2, releasing community issued patches just as happens in so many other projects. So the worst case, isn't all that bad, and I don't think it's all that likely. I think it'll be just fine, and we'll be playing tetris and PigShooter on 1.1.1 soon enough, is what I'm saying. I could be wrong though, it's happened before a time or ten.
So - how about the iPod Touch then?