Yes I have an exchange email account set up on my ipad. Before update, I could turn exchange email off and then change autolock to never. Now, even with exchange turned off, only 2 minutes or 5 minutes options appear.
Yes never comes back if I delete the account, but that's sort of a pain to do every time I want to use the ipad for notes while I am speaking. Before I could just turn off the exchange email and get never.