ElcomSoft Co. Ltd. enables enhanced and near-instant forensic access to encrypted information stored in iPhone devices, and updates Elcomsoft Phone Password Breaker with tools that can access protected file system dumps extracted from iPhone devices, even if the data is hardware encrypted by iOS 4.
While iPhone backups store a lot of information about the usage of an iPhone device, they don't have everything. Forensic wise, dumping the contents of the physical device is the only proper way to handle an investigation. A decrypted dump of the file system can be analyzed by certified, highly advanced forensic tools.
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ElcomSoft blog: Breaking the iPhone Encryption