I'm very skeptical that traditional screen-lock passcodes offer useful protection for the average person. Most people still choose to use 4-digit passcodes for convenience, leaving exhaustive key search [1] well within the reach of even very small attackers. Are these four-digit passcodes being used to derive encryption keys? If so, I'd like to hear where the additional entropy comes from. There's no use encrypting t…
1. PIN
2. Random key in effaceable NAND storage (generated on device reset)
3. Burned in permanent CPU-unique key.
I think OP's linked statement from Apple means that Apple is now also encrypting data stored on the iCloud servers.
http://www.apple.com/ipad/business/docs/iOS_Security_Feb14.p...