Not New... Have Physical Access = 0wned..
This is not new, back when the 1st Gen phones where released you used these features to allow the installation and download of the early Jailbreak software. You could even use then on an phone that wasn't activated yet.
Either way you have access to the device you can remove the pass code and dump everything off the iPhone using Mac or PC with the appropriate tools... There is a nice book in the works on iPhone Forensics from ORA that covers most of this..