I don’t know about the original claim either way, but I would be even more impressed and scared if it survived an iTunes restore (basically a PC reflashes the iPhone’s OS image with an image downloaded from Apple.)
Apple has firmware restore features in ROM. I would also assume (hope?) that there’s a procedure to enter the ROM-based restore that is impossible to intercept in software (maybe holding the power button for 10 seconds initiates a hardware reset into the ROM.)