simple_usbnet was Yifan's original, quick & simple way to get an SSH server on the Touch devices. It's basically just dropbear (possibly the one from the early K4 diags), and a very plain & 'dumb' script to toggle it. KISS.
USBNetwork is the port of the K2/3 hack of the same name, with a bunch of different set of configuration available (a choice between dropbear and OpenSSH, WiFi, ...), and a few extra tools bundled with it. It's also patched to make it friendlier with our hacked devices.
As an example, you probably won't be able to sftp to your device with simple_usbnet alone, and I'm not even sure about scp (can't remember if it's bundled in the default FW on the Touch/PW, it wasn't on earlier devices).
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