Is the attempt lockout mechanisms enforced through hardware or software?(Can modifying/exploiting the bootrom change the current limits, hence making brute forcing on the device itself viable?)
If it's not in the whitepaper, I can't do anything more than speculate. It's clear that an OS-level exploit alone isn't enough, since the Secure Enclave controls the limits. The Secure Enclave boots separately from the main CPU, with its own boot ROM. But the OS it boots is included in the ipsw Apple ships, and allows Apple to tweak the limiter, as they have done in the past.
However, what I don't know is if this exploit would also work on the boot ROM for the Enclave. If it does, then you can own the Enclave too, and bypass the lockout mechanism by convincing the Enclave to load an unsigned OS.
The fact that Cellebrite convinced the FBI that it could bypass the pin lockout makes me a little concerned that they might have a boot ROM exploit for the Enclave.
But again, generally you should assume that if a well-funded entity has physical control of your phone, that they will eventually gain
software control over it as well.
EDIT: The author suggests this exploit can let you decrypt the keybags that hold the keys for decrypting the NAND. Wow, that's bad. That makes me think this exploit may even be the one that Cellebrite found a while back. I would consider this a total security bypass and that anyone with the ability to DFU your phone can dump the data on it. That said, because of things like GreyKey, that should have been a given already. This just makes it a little clearer what exploits were probably at play.
Sure, to brute force my pass code you only need all the computing power in the world for a trillion years, so have at it...oh for people with a 4 digit passcode? They might have issues.
You can't brute force dumped NAND from an iOS device with just the passcode. You can only brute force the passcode with the SOC. If you want to brute force dumped NAND and don't have access to the SOC, you are looking at cracking AES 256, even if you knew the passcode.