Thanks to BoingBoing (love you guys!) for reporting how to do a small binary patch to enable iPod download again for iTunes 4.7:

It turns out that Apple's system for disabling the plugin uses a blacklist of disallowed iTunes additions in the iTunes binary. If you open the binary in a hexadecimal editor, like HexEdit, you can find the area where Apple has inserted the string "iPod Download" in its blacklist and simply replace the text with something else (in fact, I think you could probably just change one character) and your iTunes's original functionality will be restored.

The origin of the hack appears to be Hardmac.com (http://www.hardmac.com/niouzcontenu.php?date=2004-11-01#3138).

So except for bad press Apple didn't achieve anything with it. Engagdet also wrote a cool step-by-step instruction (http://www.engadget.com/entry/7166385640773718/) how to get back your files stored on the iPod.

It won't come easy in future. I just read at the Inquirer that Apple threatened the creator of iPodDownload (http://www.wildbits.com/ipoddownload/) and his web-hosting company until he agreed to withdraw the plug-in:

Specifically, we have learned that unauthorized Apple iTunes® software
code is being used in a computer program called "iPodDownload 1.0". The
material is currently available for download on the wildbits.com web site,
hosted by your company, at the following URL: http://www.wildbits.com/ipoddownload/

... his web-site doesn't distribute iPodDownload anymore, but that doesn't mean the author isn't supporting the tool anymore. In fact, you can download a newer version (v1.1) from this Bit Torrent link:

http://www.lokitorrent.com/download.php?id=54589