it connects to you. If a handheld has been compromised, I don't want it connecting to me. But that's not the only trouble with iPhones.
See here for example:
http://www.sit.fraun...st-passwords.html
What "proportion of the market would actually genuinely miss" the additional security is irrelevant. This is the age of Facebook. An age when the great mass of marching morons cannot be trusted to make security decisions - even when it comes to securing their own information.