Is all data on the iPhone encrypted? Conflicting sources.

Question

This page claims that data on the iPhone (running iOS greater than v4) is entirely encrypted: http://images.apple.com/iphone/business/docs/iPhone_Security.pdf
From page 3 of the PDF
<quote>
iPhone 3GS and new devices offer hardware-based encryption. iPhone hardware encryption uses AES 256-bit encoding to protect all data on the device. Encryption is always enabled, and cannot be disabled by users.
</quote>
However, if an iPhone running iOS 4 and using data encryption were to be jail broken (which does not require the passcode to perform) the user would then have direct access to all of the data on the device in an unencrypted state. Surely, the jail break process that takes mere minutes is not decrypting the entire iOS disk.
*So is all the data on the device really encrypted or did the marketing department make a mistake?*
Also, this page seems to suggest that only emails and their attachments are encrypted: http://www.apple.com/iphone/business/integration/
<quote>
To protect all data at rest, iPhone features built-in hardware encryption using AES 256-bit encoding. Building on the hardware encryption capabilities of iPhone, email messages and attachments stored on the device can be further secured by using Data Protection. Data Protection uses a user’s device passcode to generate a strong encryption key. This key prevents data from being accessed when the device is locked, ensuring that critical information is secured even if the device is compromised.
</quote>
*So can someone definitively answer whether or not all of the data on the iPhone is encrypted or not?*
My co-worker seems to think that all of the data on the iPhone is encrypted, but I'm calling shenanigans. There is no way the entire iPhone disk could be encrypted if people who jail break their phones can access the entire unencrypted disk in minutes.

Answer 1

Ha Ha, thank you sir for seeing the forest for the trees. God forbid someone compare the all mighty apple geniuses to mere best buy employees. 'Genius' is in their job title, it's not what they are. And it's a rather pompous moniker if you ask me.
Really I have to apologize for this thread, I came here expecting real answers from people who understand the flaws in the operating systems and hardware, but it's rather apparent that even if there are answers to be found here, they are shrouded behind disbelief by apple fan boys (and girls).
I'll just chalk the answers in this thread up with some of the other fine answers I gotten from apple fan boys and 'Geniuses':
"Why can't I cut and paste files and folders in Finder?"
"WHY WOULD YOU WANT TO DO THAT??? JUST DRAG AND DROP!!"
"Sigh."
"Why doesn't Finder in OS X merge folders like every other modern OS?"
"Have you tried Forklift??!!"
"So... I'm expected to replace the core file handler in an awful hack to get functionality we've had for 15 years in other OSes AND pay money for it?"
"You sound like a windows user."
"I use all OSes, Linux more often, and they all have flaws. I was just pointing out one in OS X..."
"Why don't you go back to Windows?!!"
I hope everyone enjoys the kool-aid.