Late Friday Greg Joswiak from Apple, Fred von Lohmann from the Electronic Frontier Foundation, and officials from the US Copyright Office, record labels, movie studios, and the software industry sat down together for a hearing concerning the EFF's requested DMCA exemption of Jailbreaking. This comes just a few months after the EFF originally filed for an exemption for Jailbreaking to which Apple responded with claims that Jailbreaking is illegal.
Apple is still opposing Jailbreaking and claims that copyright protection is why they have sold 30 million iPhones and 1 billion applications. The EFF's position continues to be that comsumers should be able to run any application including those that Apple doesn't approve of.
Apple is afraid of losing their control on the iPhone where they get to choose...