What are some interesting uses for an iPod touch 1G with broken wifi?

Solution 1:

Maybe Linux on the iPhone, or since your question asked for "interesting" and not for "useful", Windows 95 on iPhone:

Give a guy an iPhone, a jailbreak, and an open-source, cross-platform x86 emulator, and it's just a matter of time before hilarity ensues.

Solution 2:

I remember seeing a remote control ir attachment somewhere for sale. You could use it as a fancy remote.

Solution 3:

I would dock it to a Sony or Bose ipod-dock-alarm-clock, leaving it permanently on my bedside table as my alarm-clock-ipod.

For extra coolness points, you should turn it into a robot. See the people making "cell phone robots?". Yours would have to be untethered since you have no wifi or other connectivity.