Interested in this topic because getting my kids some Ipod Touches for Christmas (yeah, I know Apple...please don't flame me, that is what they wanted )
Anyways, sad that there is not a easy solution for this yet like all those years I used PDANet for tethering my laptop to my different smartphones and never had to pay Verizon's ridiculous extra fees for using my data connection with my laptop.
Easier than the TBH hack?
If you dont want to hack it then you can always get the widget that turns the cell radio off/on. This works easily.
Or do it manually with the *#*#4636#*#* menu.
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