Wired just ran a bit n this. DoD/Darpa has a request out for software that will allow full encryption of the internal and external memory cards with various options.
There is apparently also a serious push for this from commercial business, as users are using Android and iPhone instead of BBerry and the need for full and transparent encryption of everything in the phone IS HERE.
You'd think someone like Motorola, who already stepped up and put a fingerprint reader on the Atrix, would fill in the rest of the blanks and add a little intrinsic support for complete encryption, invisible to the user, uncrypting and visible only after a proper phone access (password or biometric).
This is nothing new--except on this platform. And it should be a solid corporate sales advantage. Remote wipe is nice, but sometimes you just need to keep it secure till you can takeback the phone.
--Red