2.0 Firmware To Have Secure Erase

Sources using the latest beta build of the unreleased iPhone 2.0 firmware say that it was recently updated with additional security features. While both versions of the iPhone currently have an "Erase All Contents and Settings" option, it is now known that firmware v1.x (the public software) only does a regular deletion of the information stored on the device. In the 2.0 firmware, sources say that this option will mimic the "Secure Empty Trash" deletion in Mac OS X.
The new deletion method implemented should be greatly more secure. While normal deletion just deletes the files, v2.0 deletes the files, unlinks them, and overwrites the affected memory sectors several times, ensuring that it cannot be recovered. This should prevent anyone from recovering a previous owner's data, like we saw earlier.
Although it does ensure that private information can never be recovered by the wrong person, it does take much longer to do. The new feature is said to take a whole hour.

It is possible that the new more secure "Erase iPhone" feature is made to compliment the remote wipe option they announced at WWDC in order to make the iPhone more appealing to businesses and their IT departments. It will also be made available at a time when many people will most likely be preparing to sell or swap their iPhone in preparation for the iPhone 3G.
[via AppleInsider]

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Good Move
Remote wipe
Apple seems to be getting more and more secret agent, btw. It's fine, just pointing it out
Now imagine that instead of throwing that letter in the garbage can, you soak the letter in water until all the ink runs off the paper. You then let the paper dry, put it in the shredder, and burn the remaining shreds. Now there's nothing to find if someone goes looking through your garbage can. That's the equivalent of the new secure wipe. It physically overwrites the data so that it doesn't exist anymore as opposed to simply marking it for deletion.