Can't disable passcode lock on iPad

General > Passcode Lock is present. But once I tap on that, all I see is "Change Passcode", "Require Passcode", "Picture Frame" and "Erase Data" (which is grayed out).

I'm worried a restore might be my only option.

I just did a complete "restore to factory condition", but then selected "restore from backup" because I wanted my customizations to come back. That got the passcode back again!

How can I do a restore, but retain the internal data within each of the apps (like locally stored hi-scores etc). All of that data is now present in my last backup.

Finally, got it to work! As usual, it had to do with some security settings. It was my office VPN connection that was setup on the iPad. Removing that configuration, got the "turn passcode off" option back again.

I think it's pretty good that this feature is present in the OS. But 2 suggestions for Apple:
1. The "turn passcode off" option should have been present on the appropriate screen - could be grayed out. That for one would prevent users from hunting about to see if that option is present on some other screen.
2. If possible, indicate to the user which mail/vpn configuration on the device is causing the passcode to be mandatory. That would have solved all the confusion in the first place.

Thanks for your help!

Since I deleted my VPN configuration, I can't see that option again. But as far as I remember, it was under Settings > Mail, Contacts, Calendar. On that screen, it was not at the top of the page in the Accounts section. Instead there was a separate option towards the bottom of that page.