I hope Verizon CSRs know this about this phone. Most other phones won't wipe this data with a factory reset, I can see a lot of people losing pictures/music when they call in and are told to reset the phone as a last resort for problems...
It also makes me glad I unlocked the phone right away.
Tech support knows about it and will warn you, but most CSRs (at least at my store) either don't know or forget to even tell you. Even on my PC I maintain a OS drive and a data drive. It's a shame that is no longer an option on my phone. My guess is that Google, even if they will never admit to it, really wants people to use their cloud services.
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