I stand corrected! Sorry guys!
My mind must have filled in the blank that it was a software issue (even though the story says it could be a HW or SW issue). I probably did that because it's not like the Proximity sensor is a new thing and just logically deduced that it would be a software glitch and not a HW thing.
So I'm pulling for a SW glitch and fix.Again... sorry... a mistake of the brain.
It happens to all of us. No worries. For a brief moment there, I thought I might actually keep my iPhone 4 if you were able to provide a link to an official acknowledgement from Apple.