thank you for your response - Waragainstsleep.
Looks like photos are not usually part of backup and thus extracting them from the backup does not help me.
I have tried 'restore' option anyways, but it gave me about 216 errors - with an error for each object sync-failure. Looks like restore is not going to work either.
To me, it seems as if last option is to recover data from the iphone disk, just like you would recover deleted files or a formatted hard-disk.
Looking at a few servcie providers, but they are very expensive.
Can you think of any inexpensive tools that will help me or any other strategy?
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