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"It is kind of like storing all your secret messages right next to the secret decoder ring," said Jonathan Zdziarski, an iPhone developer and a hacker who teaches forensics courses ( http://www.zdziarski.com/forensics_seminar/ ) on recovering data from iPhones. "I don't think any of us [developers] have ever seen encryption implemented so poorly before, which is why it's hard to describe why it's such a big threat to security."
Zdziarski said it's just as easy to access a user's private information on an iPhone 3GS as it was on the previous generation iPhone 3G or first generation iPhone, both of which didn't feature encryption. If a thief got his hands on an iPhone, a little bit of free software is all that's needed to tap into all of the user's content. Live data can be extracted in as little as two minutes, and an entire raw disk image can be made in about 45 minutes, Zdziarski said.
Wondering where the encryption comes into play? It doesn't. Strangely, once one begins extracting data from an iPhone 3GS, the iPhone begins to decrypt the data on its own, he said.
To steal an iPhone's disk image, hackers can use popular jailbreaking tools such as Red Sn0w and Purple Ra1n to install a custom kernel on the phone. Then, the thief can install an Secure Shell (SSH) client to port the iPhone's raw disk image across SSH onto a computer.
"We're going to have to go with the old imperative of 'Trust no one,'" he said. "And unfortunately part of that is, don't trust Apple."
Wired : http://www.wired.com/gadgetlab/2009/07/iphone-encryption/"
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Top Gear had an episode some time ago where they opened this beast up on the 5 mile+ straight at Volkswagen's German test facility. So damned fast - 407 kph!
From the episode: "At this speed, the tires will disintegrate in 15 minutes - That's ok, we've only got enough fuel for 12"