Yup. Same thing here. Maybe Apple intended you to be able to use the phone to make calls anywhere in an emergency. You still can't get into any of the other functions. I may actually use this "feature" to speed up dialing without having to enter my passcode all the time.
Yeah, I griped about this here as well. If you can dial any number, then why not make your favorites visible as well (in read-only mode)? My older (non-i)phones would either restrict completely to 911, or would allow 911 and any of your speed-dials.