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What would be the consequences of Jailbreaking my iOS device as a developer?
What are some of the benefits, and what are some of the issues with Jailbreaking as a developer?
How would this effect Xcode when “paired” with my iPod?
(Should I ask this on Stackoverflow?)
Jailbreaking has become legal some time ago. So from that point of view, no worries.
If you have an untethered jailbreak on your iPod (and even if you have a tethered one), pairing should not prove a problem.
The true upside is that, in the case your app does not meet the Apple requirements, you could always release it as a jailbreak app in the cydia store.