Did the Library of Congress just add a DCMA exception for Jailbreaking? Why yes they did:

Computer programs that enable wireless telephone handsets to execute software applications, where circumvention is accomplished for the sole purpose of enabling interoperability of such applications, when they have been lawfully obtained, with computer programs on the telephone handset.

Engagdet lays out what it means and -- more importantly -- what it doesn't:

you should know that this in no way requires Apple to jailbreak your phone for you, or lay down its arms in this ongoing fight. Basically, they just can't sue you for the specific act of breaking their protections, but there's nothing stopping from putting those protections in there in the first place, or for suing you for an infringement not covered in this exception -- like using Apple code in a non-Apple-approved way, or installing illegal software. Not that any of you jailbreakers would ever do that.

Rooting Android is also covered, and both firmware and software are now in the language.

Head on over to our Jailbreak Forum for more.