This is very good stuff, and is what we need more of at EIC. I reckon there should be a Guides, or How-To's, or both, section that entries like this should live in.
Some suggested amendments for your consideration:
Probably worth explaining the difference between unlocked and jailbroken in this doc, as many new users confuse the two terms.
Where you mention the warranty being voided when hacked, it may be worth stating that that is *if* you are unable to restore cleanly and prevent Apple from realizing you hacked.
On basic jailbreak definition part, it should say that it allows access to areas of the file system which Apple has not granted, which in turn lets us install 3rd party apps.
Definition of SSH = a secure method of remote access to systems. (In our case it usually involves file transfers, but doesn't have to.)
Firmware is generally an interface between hardware and software layers it has to interact with. With the iPhone, the term is almost interchangeable with 'operating system'.
Pwnage - is safer largely because it allows restore of JBed firmware via iTunes.
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