Firmware 2.1 Wipes Data After 10 Passcode Attempts
Comments

Since it is a selectable option and you can set a time period to require the password, its a great option. You don't have to enter a passord everytime it locks the screen. Hopefully, the users of this option realizes that they should sync and back up the data on the home computer.

I think this is a good option. If you loose your iphone, nobody can access to your personal data. You can restore a backup with iTunes or AppBackup ;)

So if somebody really wants to screw you, they can just enter the wrong passcode ten times. Stupid.