iPhone 3GS and Security

"The new iPhone 3GS includes hardware-based encryption, giving the impression that your data is more secure than on previous models. A well-known iPhone security expert shows, however, that the data is just as easy to grab using simple hacking tools."

This is an interesting article about encryption on the iPhone, and for the casual user it seems you don't have much to worry about. However if you become the target of a serious hacker, you could be in trouble. Not too likely in my circumstances, but I suppose it could happen if I were an enterprise user and kept sensitive data on my iPhone. I do keep some sensitive data but I use the normal password feature plus 1Password for that extra peace of mind. And I also have the option of the remote wipe if it came right down to it as a MobileMe subscriber. Anyone worried about your iPhone being hacked?