Geohot’s bootrom exploit is a tethered exploit, meaning that it is not able of booting a patched bootchain. So, what they actually do is use this bootrom exploit as an “injection vector” in order to apply kernel patches (userland jailbreak). Right now, as the exploit is tethered, you need to re-jailbreak your device in case the battery drains out or you switch off your device.

The image clearly shows cydia 1.1.1 running on iOS 5 on iPod touch.
Musclenerd is likely to package the exploit either in redsn0w or pwnageTool. There is however no ETA so far and the team is still testing out the compatibility with the popular apps and other jailbreak tweaks.
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