@ I knew you wouldn't let me down...
>>"you thought he was having a kidney transplantation, didn't you? Well, he wasn't."
>Correct, he wasn't... It was his liver!
Ooopsie. Liquid lunch + excessive smugness will do that.
"@ the iPhone haters"
There doesn't appear to be a lot of the dreaded (and mostly fantasized) iPhone haters here, sorry. One or two smug jokers maybe, but haters? Persecution complex, much?
"since an sms shows where it's come from it should be relatively simple to trace any would be hackers."
Yeah well, grammar put aside why don't you go tell that to the guy I saw this morning buying one of these widely-available pre-paid thinggies, cash? Similarly, TCP-IP-based attacks (of banks, military systems, SCADA-monitored infrastructures, ...) are no threat as a TCP-IP connection shows the attacker's IP address. Hey, real-life crime is not a big issue either, after all the thugs leave their biz card on the scene, don't they?
Granted, this vuln is probably not a threat to whatever they call "homeland security" (as anyone keeping crucial info on an easily-robbed or easily-lost device is a fool. What if you go meet a chinese <cough> damsel <cough> in a comfy hotel room during the Olympics?) but your argument doesn't hold anything remotely watery. This is a serious threat for the average user, and it doesn't look like it's particularly easy to thwart, either. Not if you want to retain the ability to receive SMS at least. Not that I'm the least bothered, I don't have an arm and a leg to spare on a mere gadget, to begin with (I bought a much-needed* EEEPC instead).
*definition of "needed" may vary**.
**The handbrake isn't that impressed, for example, but she must be biased: she owns a MacBook.