Sorry! Yes, to be clear, the code segments of the binary will be encrypted by FairPlay. But the other segments aren't. The "strings" command will still dump all of the strings in these binaries. You'd need to jailbreak to figure out the algorithm of how those substrings strings were concatenated, but he probably could have deduced what was going on from the "SavedPasswords" string just the same.
I thought about trying the "strings" command first, but I didn't expect that the password would be just laying there. Even if I found the "SavedPassword" string, I couldn't use it the way I did without jailbroken device, because configuration file that contained the saved password wasn't embedded in the application. The password was actually written to configuration file on the device first time it was used.