On the pre-2.0 software, you could use the "Extended Preferences" application to enable an "Auto-Dim" feature in your Settings>Brightness menu. So far, no solution has been posted for jailbroken iPhone 2.0 software... until now! 
Replace the file "Brightness.plist" in the following directory: /private/var/stash/Applications/Preferences.app
This will allow you to specify a time after you last touched the screen, for the screen to auto-dim to the lowest possible brightness. This works no matter what application you are running.
Note: the way this is implemented requires that you have "Auto-Lock" enabled as well. Since the highest standard setting for Auto-lock is only 5 Minutes, I have also edited the settings file there to provide more flexibility. To add options for 30 Minutes and Infinity Auto-Lock, replace the file "General.plist" in the following directory: /private/var/stash/Applications/Preferences.app
(Whenever you change the Auto-Lock setting, you'll need to go back and set the Auto-Dim feature again.)
Be smart - back up your original files before replacing them.
Have fun saving your battery life!!
(Why Apple doesn't already provide this in the Settings baffles me)
[Credit goes to the developer of Extended Preferences for the original .plists that I modified]
Replace the file "Brightness.plist" in the following directory: /private/var/stash/Applications/Preferences.app
This will allow you to specify a time after you last touched the screen, for the screen to auto-dim to the lowest possible brightness. This works no matter what application you are running.
Note: the way this is implemented requires that you have "Auto-Lock" enabled as well. Since the highest standard setting for Auto-lock is only 5 Minutes, I have also edited the settings file there to provide more flexibility. To add options for 30 Minutes and Infinity Auto-Lock, replace the file "General.plist" in the following directory: /private/var/stash/Applications/Preferences.app
(Whenever you change the Auto-Lock setting, you'll need to go back and set the Auto-Dim feature again.)
Be smart - back up your original files before replacing them.
Have fun saving your battery life!!
(Why Apple doesn't already provide this in the Settings baffles me)
[Credit goes to the developer of Extended Preferences for the original .plists that I modified]