The problem here is not with the screen protector, but with the Apple iPhone 4 screen being so fragile. Sure it is a beautiful screen without any protector. Any protector is going to diminish the quality and feel of the naked screen.
As for the Zagg bashing all I can say is that I am happy with my front screen shield. I know if it scratches or comes off then they will replace it for the lifetime of my iPhone. That is what I call service. Maybe that is why it is a little more expensive than other brands out there.
Before I installed the Zagg I tried 5 dry screen protectors which were actually hopeless. They had bubbles which I was unable to get rid of, and the screen looked crap. Not only that after a small amount of use in my pocket they just fell off. Sure the Zagg screen protector feels a little rubbery, but I can live with that, knowing my screen is safe. People I show my iPhone 4 to never even mention or ask if I have a screen protector on it, they are still impressed by the phone.
I guess it is all down to personal taste. My view is that Apple should not market their product's screen as been tough and made out of glass used in helicopters. Maybe it is used in helicopters, but if you are using your phone without any protection then be sure not to drop it or carry it in your pocket with anything that might scratch the screen.