I'm not sure about other jurisdictions outside of Perth, but I know the Police here are able to apply for "Data Access Orders" to force suspects to provide passwords/encryption keys etc. The penalty for defying an Access Order are quite severe and generally much worse than what is being investigated, hence no incentive to not supply the passwords.
For that reason the ability to bypass/crack passwords for LE in Perth is really no longer a major issue, but that's just Perth.
Out in the corporate world I come across it occasionally and it's also a sexy trick to sell to clients, so for that reason I hope the hardware exploit is found, but as I said it's been a long time since the iPad2 came out and it was never exploited, so I'm not holding my breath for the other newer devices. It seems for the time being that Apple have the upper hand and with the large JB community satisfied with the soft hack to JB there seems to be little interest in finding a hardware exploit.
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