To be fair, they could have stated it explicitly.
If the data was truly encrypted, the concept of pushing an update or creating a master key would not be possible.
Apple's security PDF says that the iteration count is calibrated so that one attempt takes 80ms in hardware, so that's the hard limit on the brute forcing speed, regardless of any updates Apple releases.
This means that a long alphanumeric passphrase is secure, but a 6-digit passcode could be broken in half a day, and a 4-digit passcode would take just a dozen minutes.
# characters [0-9] [0-9a-z] [0-9a-zA-Z]
1 0.8 seconds 2.9 seconds 5 seconds
2 8 seconds 1.7 minutes 5.1 minutes
3 1.3 minutes 1 hour 5.3 hours
4 13 minutes 1.6 days 2 weeks
5 2.2 hours 8 weeks 2.3 years
6 22 hours 5.5 years 140 years
7 1.3 weeks 200 years 9 thousand years
8 13 weeks 7 thousand years 550 thousand years
9 2.5 years 260 thousand years 34 million years
10 25 years 9 million years 2 billion yearsIf it is stated very clearly, can you quote me a sentence?
In the security guide linked here it seems possible for this iPhone model but not later ones.
Edit: According to the discussion below Apple can ship updates to the secure enclave. I don't know if that's possible to a locked phone.
I wouldn't be surprised (It isn't stated in their iOS security doc) if the key generation uses a hash of the system files as part of a seed for the entropy source used for keys, though that's pure speculation on my part.
Edited for clarity regarding "push" vs physical access.
As far as I'm aware there is no known technique to prevent someone with physical access, a bunch of engineers, and the code signing keys from replacing firmware.
Drawing the line in the sand at "the government can't force us to hack this guy's phone this time" thus ends up being "can't force us to provide features to hack anyone else's phone down the line".
Starting with the A7 CPUs, the iPhone CPU has a "secure enclave" which is basically a miniature SoC within the SoC. The secure enclave has its own CPU with its own secure boot chain and runs independently of the rest of the system. It runs a modified L4 microkernel and it does all of low-level key management.
The secure enclave contains a unique ID burned into the hardware. This ID can be loaded as a key into the hardware AES engine, but is otherwise designed to be completely inaccessible. Assuming AES is secure, that means the key can be used to encrypt data but can't be extracted, not even by the supposedly secure software running in the secure enclave. This key is then used to generate other keys, like the ones used to encrypt files. That means you can't extract the flash memory, connect it to a computer, and then try to brute force it from there. Or rather you can, but you'll be brute forcing a 256-bit AES key, not a 4-digit PIN, making it effectively impossible.
One of the secure enclave's tasks is taking a PIN (or fingerprint) and turning it into the encryption key needed to read the user's files. The main system just hands off the user's code to the secure enclave, and gets back either a key or a failure. The escalating delays with successive failures and wipe after too many failures are both done in the secure enclave. That means that updating the device's main OS won't affect it.
All of this is discussed in Apple's security guide here:
https://www.apple.com/business/docs/iOS_Security_Guide.pdf
The one open question is software updates for the secure enclave. According to that guide, its software can be updated. Does that mean it can be updated with code that removes the restrictions and allows brute-forcing passcodes? The guide doesn't address how the updates work.
My guess, based on how meticulous Apple is about everything else, is that updates are designed to make this scenario impossible. The secure enclave must be unlocked to apply an update, or if updated without unlocking it wipes the master keys. This would be pretty simple to do, and it would fit in with the rest of their approach, so I think it's likely that this is how it works, or something with the same effect.
In this case, the intended answer/conclusion/implication is "yes, this is."
"Locked" seems like an improper term for such a scenario.
I applaud apple for appealing this case to the public however there is a HUGE HUGE difference between "we can't unlock" and "we shouldn't unlock". This distinction will likely be lost on the general public unfortunately.