I'm not security expert at all, so I have a question. If I lock my phone using pin does it mean that my passwords and keys (mentioned in comment #48) are not encrypted using pin+some phone HW ID? Also does encrypting my passwords and keys using pin+some phone HW ID really solves the problem?
Yes.
> Also does encrypting my passwords and keys using pin+some phone HW ID really solves the problem?
Yes. No. Sort of. It really depends on what you're trying to protect against. It's absolutely not a panacea, but it will certainly make most attacks against it, where you solely have the DB and any relevant IDs, significantly more expensive. However, it won't help if, say, you can escalate to root from an app (or remotely!) and backdoor the PIN entry.