thanks for being another one
Another moron who didn't bother to actually read or understand the source before commenting.
First off, this only exposes a small number of passwords, not all of them. Why not? well, MOST of the passwords on iOS 4 are already using 2 available encryption technologies preventing their access. These are the password systems 3rd party apps have access to (and are encouraged to use), Apple mail uses, Safari uses, and more. The number of core apps supporting this has been increasing with each further release of 4.x. It is simply a matter of completing the process on VPN, Exchange, and IMAP account access systems in order to close this gap.
Oh, and for the rest of you, you do realize the very same data is stored in a database on Android, accessible WITHOUT even jailbreaking the device, right? You know, since the base file system on Android is NOT EVEN ENCRYPTED as it is by default in iOS 4.
and physical access, if they have it, you loose, period. Matters not the device make or OS revision, they have ALL been hacked. This is a low priority threat requiring detailed knowledge and access to unreleased code, access physically to a device, and all it gets a hacker is access to your VPN passwords (which without additional authentication is useless), and/or access to an iMAP e-mail account (and if you're storing data inside your mail server that's critical, you already failed, your e-mail passwords are easy enough to get by a number of active bot networks).