Does it mean AT&T still has to honor the warranty?
I ask, because I don’t know how the higher end consumer device warranties work.
Be forewarned: there is almost ALWAYS a deductible they don’t mention when you sign up for it.
The warranty would be with the maker of the phone, not AT&T or any other carrier. The manufacturer's interest lies with the end consumer, not the carrier. In the past, they've crippled their phones in order to win approval from carriers, but they are nonetheless happy to see hackers bypass the cripplements. After all, if they worked to build in a neat feature, they are not going to be happy about its curtailment to support a carrier's agenda.
IOW, phone makers are great. Carriers suck!