An anonymous reader points to Apple Student Developers' post about a little hack:
ASDHackmaster Mike $lastNameWithheldForFearOfMassEmail sent in the following iPod Breakout Level Editor [796KB .sit] (with source) if you are interested. As with *all* hacks, read the manual and no one is responsible for bad mojo or broken stuff :-)
Update: We have tried it out and it seems to work well, just played the first level with 5 rows of blocks, starting with two balls and a 68 pixel paddle…
From the ReadMe :
This application allows you to edit the levels in the Apple iPod™ Breakout game. The application modifies the Firmware file that's contained in the "iPod Software 1.1 Updater" package.
Warning: Modifying the firmware of your iPod™ is potentially dangerous and could void the warranty of your device. Use this application at your own risk. [full ReadMe follows]
Download now… [796KB .sit]