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JAR! The "Cat and Mouse Game" between the nasty pirates and the royal Cupertino navy seems to have shifted decidedly in the pirates favor, or so says Engadget:

Those crafty kids on the iPhone Dev Team have already hacked the 2.0 firmware, but now they're getting ready to release the oh-so-creatively-named PWNED tool, which takes iPhone hacking to the next level by patching the bootloader to let you load any firmware image you want -- even images not signed by Apple. That means custom patched firmware can now be loaded directly from iTunes, which simplifies the jailbreaking / unlocking process tremendously, and also means that a patched version of the 2.0 firmware is coming soon.

Video after the break!

Looks like the most dastardly of jailbreaks/unlocks yet. Can Apple check the move and raise the stakes, or is the iPhone DevTeam to be believed and it's the yard-arm for El Jobso's lock-down? What do you think?