Who is the lame who changed the last update to make you re-login with password every time you get a text message or leave the iPhone to go to the bathroom for a few minutes. They have a selection in the settings that looks like it was intended to get around that, but it doesn't work.
It looks like I was wrong. After a few times turning off the iPhone, it stopped requiring that I enter in my login/password. I guess it takes a while after you change the settings before it takes affect :)