Since the iphone 3gs Apple has offered hardware encryption built into the phone. My understanding is when a passcode is applied and locked that the phone is encrypted. Here is Apples article talking about it.
http://www.apple.com/iphone/business/docs/iPhone_Security.pdf
So does the Android have some level of encryption when is a resting state? Can it be used for your Benefits department where HIPPA information is handled?
Here is a feature request for hardware encryption.
http://code.google.com/p/android/issues/detail?id=8686
Here is the exchange policy that enforces it.
http://blogs.technet.com/b/exchange/archive/2009/09/22/3408360.aspx
Can't answer the question but FYI we have a Mobile Phone forum section!
In regards to Apple Encryption, I think the device is encrypted passcode or not. Wiping the phone is them deleting the encryption key, not actually wiping the device. Supposedly though the encryption isn't that great - there's mechanisms that can bypass it as long as the phone is working/booted.
I think you can encrypt an Android phone with an app, but I haven't looked into it.