For 99% of the users, this is complete nonsense. Why do we encrypt the phone? Are we afraid of the NSA or whatever agency cracking our phones? No! The reason most of us encrypt the phone is to prevent others from posting our pictures or reading our mail.
When somebody else finds my phone, or steals it, the four digit PIN is enough protection. Then again, I don't use a four digit PIN, but something longer, and from six or up it's really strong enough for manual unlocking.
People who have the means to read contents from the memory chips, they probably have the means to use other measures to get what they want.
Considering they just sold for scrap an entire manufacturing pipeline to do exactly that, I'd say they really don't. If they do, they're going about it in the silliest and most roundabout way.