It does currently require a wi-fi router, but by the end of April the new firmware will let it connect directly with the mobile devices.

Has anyone found out if this works with Xcode 3 yet?

but they let you tweet what ever you want about their article, and offer a nice convenient link to do so on their page :D

Doing my part to help ;) using their own tools

The data is encrypted in the software, they are attacking that its not done at the hardware level.