One behavior of the iPhone 4 Auto-Brightness that is a serious operational error or bug is that it locks onto the brightest ambient light sensor value that it has measured at any point starting from the time it was turned on, and then continues to use that highest value indefinitely to set the screen brightness until the display turns off – either by cycling through sleep mode or full power off.
This means that the screen brightness is frequently set too high, which wastes power and can cause eye strain if you move to lower ambient light levels.