The pro ported iPhone Encryption of the iPhone, is easily bypassed with widely proliferated jailbreaks.  iPhone owners need to keep better track of their phones.  If you don't passcode your phone, do it.  If you don't have a mobile Me Account,  have one.  AT&T and or Apple needs to allow Mobile Me account owners to wipe their phones with a simple call to AT&T.  Not everyone can get to the Internet right after they notice that their phone is missing.