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In such a case what is to stop a malicious site having a "free porn" button which installs something much more nasty.

In the case of JailbreakMe 2.0 (the exploit last year), the makers of the JB actually released a Cydia patch for that exact reason. In that instance, the JB'ed device was in that regard more secure than the stock device.

Nothing, of course.

In which case I'm surprised there wasn't a widespread epidemic of malware infected iOS devices.

Because that would require someone to invest time and money in writing malware which will only ever make it on to a handful of devices and will be removed when those devices are updated.

There are a huge number of iphones in circulation. If the malware had jailbroken privileges would it not be able to disable the update mechanism on the phone?

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