> If I lock my phone using pin does it mean that my passwords and keys (mentioned in comment #48) are not encrypted using pin+some phone HW ID?
Yes.
> Also does encrypting my passwords and keys using pin+some phone HW ID really solves the problem?
Yes. No. Sort of. It really depends on what you're trying to protect against. It's absolutely not a panacea, but it will certainly make most attacks against it, where you solely have the DB and any relevant IDs, significantly more expensive. However, it won't help if, say, you can escalate to root from an app (or remotely!) and backdoor the PIN entry.
A PIN short enough for almost any user to be bothered entering it to unlock the phone is not going to be long enough to resist brute force attacks, even with a 10,000x PBKDF2 work factor.
Yes.
> Also does encrypting my passwords and keys using pin+some phone HW ID really solves the problem?
Yes. No. Sort of. It really depends on what you're trying to protect against. It's absolutely not a panacea, but it will certainly make most attacks against it, where you solely have the DB and any relevant IDs, significantly more expensive. However, it won't help if, say, you can escalate to root from an app (or remotely!) and backdoor the PIN entry.