Is there a way to simulate touches and swipes?

[tianshuo]

That would be awesome, and there could be AI apps to finish angry birds and such.

[TooTallNate]

Love the idea! This is not currently implemented, but now it's on the list.
Related: http://stackoverflow.com/questions/4137205/simulate-touch-on-iphone

[bored-engineer]

No need to re-invent the wheel. Have a look at Mouse Support by ashikase. If you need some code, look at the veency code http://svn.saurik.com/repos/menes/trunk/veency/