Reapply the jailbreak, your firmware is supported. If it still doesn't work, report the error code you get in the jailbreak thread.
See
Kindle_Touch_Hacking#Blocking_Official_Updates
If you do not wish Amazon to get your data, do not turn on WiFi, or use
the BBB hack. Keep in mind that Amazon already knows what books you have, if you bought them from Amazon. If not, whichever store you did purchase from, knows.
If you wish to prevent Amazon targeting you with Big Data, this works. If you are afraid of the NSA, keep in mind they are probably monitoring your home network

-- so even if you only read free downloads from sites that don't require accounts, like Project Gutenberg and archive.org, they still know.