Simulate touch on iphone
What you need to do is first create the events you want, and then send them to SpringBoard over the "purple port" eg. mach port. To make them system wide you must forward them to each application over the port. That means you need to actually do what the windowmanager does and looking at which app is active, screen locked, etc.
There are a hand full of private framework APIs that work (IOSurface, GraphicServices, SpringBoardServices, etc.) to get you the pieces you need.
You will have to load these private frameworks at runtime using something like dlopen().
This is 100% possible without jailbreak as of iOS 6.1.4 (current ATM), but you will be loading private frameworks which is not allowed by apple for AppStore ;)
It's worth pointing out the KIF framework here. It's intended to run in the simulator but part of the code is simulating touch evens in code. with luck, this will be a good starting point.
https://github.com/square/KIF
Specifically, look at stepToTapViewWithAccessibilityLabel
in KIFTestStep.m and the line
[view tapAtPoint:tappablePointInElement];
It is possible. Exactly how you mentioned, using GSEvents and sending them to the purple named port of the aplication you are trying to control/simulate. Of course you need KennyTM's GSEvent.h to accomplish this. I've done this for iOS 4.3, just by changing some of the values that Kenny had (like kGSHandInfoTypeTouchDown), but now I'm trying to do it for iOS 5 and it's not working, till now.
EDIT: It is now working for iOS 5.1.
It's not easy to synthesize a touch event on the iPhone: you have to use undisclosed API, so you have a high probability of breaking on every update of the iOS and getting rejecting from Apple.
Here's a link that demonstrates how to synthesize a touch event on the iPhone:
Here's another question on StackOverflow: How to send a touch event to iPhone OS?