I really don't understand how the people who were defending Apple and blaming AT&T had a leg to stand on now. I had zero reception (No Service) in my basement, and after 2.1 I have full bars and can get about 560kb/s over 3G.
I'm getting somewhat better 3G reception at my office, which is in a fringe area. Maybe an extra bar. It does seem to me that reception has actually improved. But I'm not surprised some here are saying otherwise - reception is a combination of factors and depending on where you are and what the towers in your area are like, the software update may help or it may not. Based on my quick browsing through all the comments, I'd say Apple did fix something major in the radio firmware. I have no doubt there are things AT&T can do (and some they have probably already done) to help as well.
Let's break out the whine and cheese for some of you! Apple has stepped up, like always and has addressed issues. I'm seeing full 3G bars when I had flat lining 99% of the time here and everywhere I drove. No dropped calls, web pages load fast, email is quick, and best of all, my battery is fully loaded! So let's stop the moaning and give credit where credit is deserved!
I haven't seen a change, yet. My house gets spotty 3G coverage, but full EDGE. I have been leaving 3G off to save battery and to ensure decent coverage. After updating to 2.1 this morning, I switched on 3G. The display showed one bar and then dropped to "No Service." I waited over a minute and it never got service again. I switched off 3G and was back to full five bars of EDGE service. So much for the phone's ability to drop back to EDGE on the loss of 3G. Grrr.