A software fix absolutely could fix the issue.
When the first generation Intel Mac Books came out, there was a problem with them shutting down randomly. It turned out that it was a sensor reading being tuned too closely to the shut down temperature as written into the software. Apple issued a software and firmware update that adjusted the temperature level that would cause a shutdown. I had one of those units and was absolutely thrilled once the fix was applied.
With the iPhone, the bars displayed are relative to the strength of the signal as registered by the software. If the level is detected to be too low, the software would force a dropped call. Once the update is released and applied, that threshold would be adjusted so that the call would not be dropped as quickly.
I have not experienced this issue, but my signal has always been strong with AT&T in the areas that I travel. I used my iPhone 4 naked for the first day until I got my case, but even before the case was put on, I didn't have any dropped calls.
Here's hoping that software fix is quick in coming and does indeed work.
I agree. Most of the time, even when I have 0 or 1 bar, I can still make clear phone calls and surf the web at fast speeds on 3G.