This guide is for people who have jailbroken their iPod touch or iPhone, installed Installer.app, installed OpenSSH from Installer.app and no longer need the depreciated dropbear SSH server. Running 2 servers that do the exact same thing ridiculous waste of system resources. Uninstalling dropbear is quick and easy and here’s how you do it.

Step 1: Ensure you have OpenSSH installed by checking the uninstall portion of Installer.app, and also that you’re running it by rebooting the iPod touch/iPhone after installing it from Installer.app.
Step 2: Connect to your iPod touch/iPhone via SSH.
Step 3: Run the following commands to remove the dropbear files.
rm -rv /etc/dropbear/
rm -rv /usr/bin/dropbear/
rm -v /System/Library/LaunchDaemons/au.asn.ucc.matt.dropbear.plist
Step 4: Before you start, backup this file before editing it. Then download and open /System/Library/LaunchDaemons/com.apple.update.plist in a text editor and remove any section containing dropbear references. Be very careful when editing this file as it can cause problems if damaged. Then upload the file replacing the original (making sure your backup is intact).
Step 5: Reboot the iPod touch/iPhone. You should now be running just one SSH server.

You should also consider installing Services.app from Installer.app and turning SSH off when you don’t need it, some have claimed that it drains your battery fairly quickly.