The fact that the iPhone doesn’t securely erase user data when you select “Erase All Content and Settings” has prompted a lot of hand-wringing (and given rise to a lot of complicated manual workarounds) as people get ready to flip their old phones and upgrade to the iPhone 3G, but it looks like there’s a simpler solution coming: AppleInsider says the iPhone 2.0 software now securely erases user data.

The process is apparently similar to Leopard’s Secure Erase Trash feature, and it’ll unlink data and overwrite it with random bits, making your personal info impossible to recover. Of course, that’ll take some extra time. iPhone software 2.0 will also include among its many enterprise-ready features a function called “remote wipe” that was designed to protect data stored on iPhones by offering a means to remotely wipe them clear in the event that they are lost or stolen.

[Source: Engadget Mobile and Apple Insider.]