I added a comment at hackaday sharing credit with you guys, but it is "awaiting moderation".... They like to "pin all the blame" on one guy.
http://hackaday.com/2012/10/05/jailb...le-paperwhite/
EDIT: My hackaday comment is now public. Thanks for sending me the jailbreak and USBNet packages to test on my Paperwhite Guinea Pig, NiLuJe! And thanks to ixtab too, for the interesting PM "inner circle" discussion that ended in a successful jailbreak.