Why can't iPod touch 2G use home screen background wallpaper?

It really didn't make any sense. Everyone wants to update their iPod touch to iOS 4 just because they want to use Multitasking and home screen wallpaper. But Apple just don't let all the iPod touch 2G users use these features. I know that the touch 2G hardware is not powerful enough for the multitasking ability and it's reasonable, but just why can't we just replace the home screen background by a picture?

Reports have quoted that Steve Jobs said that icon performance was degraded too badly with wallpaper for Apple to feel comfortable including that feature.

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