Someone finds your lost iPhone - restore - remove sim, phone is gone forever. Sure you can have a block put on it, but that doesn't get your phone back and everyone loses. Added to which they can still sell it abroad. You shouldn't be able to reset a phone without a password (perhaps a key that's stored with apple so it can be recovered with your apple ID should you forget it). There should be a mechanical lock on the sim slot to stop someone who doesn't have the software password from popping the sim out OR turning the phone off. Would NOT be hard to make a simple locking sim slot Sure, they could dismantle the phone to remove it, but they'd risk damaging it, and most muggers and thieves probably don't have those skills anyway. I think the passcode is designed only to protect the information on the phone itself should it be lost, which is great. But Apple should really be thinking about all round phone security that would allow the phone to stay on unless you have a password to A. Turn it off B. remove the SIM card C. perform a restore. Those things alone would make iPhones almost pointless to steal.