After about 3 minutes of minor, non-abusive arguments with the nice "Genius", he replaced my phone with no questions asked. I told him that my proximity sensor was working on and off and was using his finger to test it. To be honest the finger test is not really a great way to test the sensor, since we put our cheek against it and not the sensor. I can tell you that the hardware is the same, and I can still do the "death grip" with it. I believe it is the same hardware. This leads me to the conclusion that Apple will not recall this iPhone, but instead will give free bumpers to everyone, or give a stupid reason that it is fixed by a software update....