Re: Come again?
"You'd still need context, though. Harder to get without access to the innards."
Context here would be a password/PIN entry screen, or what's being typed in general. If you say "randomize the positions of things on the PIN entry screen", then you have suddenly slowed down the user and thus made shoulder-surfing/secret recording of the entry a lot easier. Tradeoffs and all...
And I don't sit around designing exotic iPhone bugs for a living, believe it or not. I'm sure that the people who actually do can come up with a myriad other ways of haxxor you with a day's unsupervised access to the phone, which don't involve a dodgy screen.
"Still need a way to EXfiltrate those conversations, and if the radio chips are also protected, then you'll need a total package. Might as well use a specialized bug in that instance."
The problems you encounter when making a small bug are the power supply and antenna. In a phone you have both - a miniature transmitter is not only readily available commercially but also trivial to build from parts.
"ATMs have to sit by their lonesome for days at a time. Who within a location actually pays attention to the PIN pads during normal operation?"
I can't find a public document with the whole standard (thank Jesus/Allah/Buddha/Kek I haven't had to deal with PCI standards in a good while), but the requirements are in the range of withstanding tampering for 10 hours or a budget of a couple tens of thousands USD. Solitary ATMs presumably have additional layers (as opposed to payment terminals or such) - the whole shell of the ATM itself, associated alarms, CCTV, etc.
"As for techs, that usually points to inside jobs, meaning they have access to key chips. Rogue techs could use side channels like hidden cameras, but again that's close to insider status to get them clandestinely in the machines and outside this context."
The EPP standards basically say that opening the thing (eg for service) should nuke the keys. They say very little about what's stopping someone from grabbing the keys as they are re-entered, becacuse this is really difficult to do.
"That's why they've been working on this VERY hard for the last 20-30 years, coming up now with this chain of trust system for the 4K systems (as well as the consoles, which double as 4K players) based on what the phone makers have been doing"
Budget for copying a single movie: Small (price of movie for a home user or total sales for a commercial piracy operation)
Budget for pwning a single phone: Large (potentially millions)
It's even worse than that - stopping a phone from leaking data to a physical attacker would be like stopping someone from recording a movie by pointing a camera at the screen.
Plus, perhaps most importantly, 4K movies get pirated all the time - so either it's broken already (just not public), or there's no incentive to break it because they get out another way. Admittedly they're not as frequent on the torrent sites, it seems (I rarely watch movies and don't even own a 4K display so I don't keep track of the particulars), but this might just be due to lack of demand for the higher quality.
"(and some phone STILL haven't been rooted or custom-ROM'd at this point; ask xda)."
All of them can be and regularly are rooted... with a couple of million dollars worth of gear (scanning electron microscope, FIB workstation, high-freq logic analyzers, etc), knowledge and time/budget.
It's just meant to be unfeasible for the end user and lower-range attackers (and slow down higher-range attackers so they can't do it en masse).
If screens turned out to be a viable vector of pwnership and DRMish protection applied to them, that sort of budget would immediately start going towards breaking it.
Then the sort of attacker who would pwn your phone with a fake screen would ... pwn your phone with a more expensive fake screen.
So even if we don't consider all the other very viable (and far more likely) attacks that applies if you give someone a day of unmonitored fiddling with your phone, the most you have accomplished is shifting the attackers' budget bracket slightly upwards. I should remind you that a fake phone-pwning screen wouldn't exactly be cheap on the grey forensics/spook market in the first place - five or six digits most likely.