I must admit I dont get it either - why is the data being sent to Apple in the first place ? Is it generic "diagnostic" information or contains a lot more stuff ?

That's the point. That the data is stored on the phone is no big deal; that it's stored unencrypted is just careless.

In reply to a post by MrTAToad2:

I must admit I dont get it either - why is the data being sent to Apple in the first place ? Is it generic "diagnostic" information or contains a lot more stuff ?

That's explained in several posts (and links to external sources) throughout the thread.

As the non-issue raised in the opening post in this thread has been fully dealt with, and some people (not you) seem determined to maintain their misleading comments regardless, this thread is closed.