Really how secure is the current erase all content and settings?

I am not sure about taking my iPhone in for repair or exchange after reading many old articles about how unsecure the erase really is, seeing how many sensitive passwords and e-mails I have. I have the most current firmware. So tell me, how reliable for keeping my data safe and gone is the current "Erase all content and settings" feature?
Also note: I have iPhone 3g, not later or earlier. So I am not sure if the hardware would make a difference, but yeah.
Message was edited by: nkcrcr

It is what it is. Erase all contents & settings overwrites user settings and information, writing a series of ones to the data partition. This process can take several hours, depending on the storage capacity of your iPhone. During this time, the device displays the Apple logo and a progress bar. If you had a 3GS, it would be instantaneous, as the 3GS supports hardware encryption. Can someone still recover data? Yes. But the software & equipment necessary to do so is very expensive & generally only available to law enforcement.

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