Careful with that iPhone Data

For everyone getting ready to rid themselves of an iPhone (for whatever reason), please remember: inside the iPhone is simple flash memory. This memory is fairly recoverable, even when a restore is run to "wipe" the contents. WIth the ability to "jailbreak" an iPhone and access the filesystem, the problem of leaving sensitive data on the device becomes a little more problematic.

At this stage, I'd recommend waiting until the version 2 software ships and seeing if there's a true secure wipe before flipping a used iPhone.