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No... I'm not saying that at all. That initial device to device sync gets you setup with your wifi and iCloud/iTunes passwords. But you will still need to restore from an encrypted iTunes backup to get all your app passwords back as part f the new device setup. The individual app passwords do not come over with the device to device sync.

Oh okay, that sucks. I was sort of hoping that they'd come up with an alternative near-full-device migration method that didn't require iTunes.
 
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