I'm not so sure I like where the rest of this argument is going, but I do want to support the idea that there are probably a zillion ways to spy on and otherwise abuse somebody if you can get them to use an iphone that you jailbroke and installed some off-app-store software on.

Maybe it's better to come up with some lesser way to discourage people from using this kind of software on somebody else's phone without their knowledge than shutting down the whole service entirely.