That's a great summary of the situation. And in my view that's exactly what makes the difference between the iPad/iPhone and any more regular computing system like a PC, Linux or Mac box.
And cars can be chipped. And iPhones can be jailbroken. Jailbreaking an iPhone is so simple today that anyone could do it*, instead we complain that the system is too closed. By the way, some developers that were refused by Apple's store turn to Cydia instead. Cydia is an alternative appstore for jailbroken phones were you can get both free and commercial apps too.
My iPhone is indeed jailbroken. Not to install pirated software or to make it simlock free, instead I did it to overcome some major annoyances such as the lack of an easy switch to turn that annoying auto-rotation off. I can now internet laying on my side in bed. :-) SBSettings is a blessing. Maybe Apple should "invent" that too ;-)
*but if you are so "adventurous" to install ssh please change both passwords (root & mobile)!