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Uh-huh... storing a lot of bitcoins on a usually-network-connected device would make me very nervous. I think we're going to see a LOT of smartphone exploits over the next 5 years (maybe I'll be pleasantly surprised and it will turn out the smartphone OS folks have done a great job making them secure).
But security is not a boolean, and we clearly need to do what we can to help people keep their bitcoin wallets secure.