Radio signals when off?

If it is truly off and not in standby it should not generate interference.

All electronics can generate interference when powered on.

 

Unless you use the red slider, the phone isn't off...

One nice thing about 3G is that it doesn't give that annoying 217Hz buzz on nearby speakers that GSM phones used to.

 

so the government can spy on you

 

Even with the switch in the off position, the phone is not truly off. The E-911 chip is still active and can on be turned off by removing the battery

 

You're a little confused about E911. If the iPhone had a GPS receiver then, yes, it very well could still be active in Airplane Mode but even A-GPS phones aren't going to transmit anything in Airplane Mode. That would make the mode useless. For the iPhone, E911 (that's the emergency service's equipment not the phone) uses tower-based location to find the phone through its GSM connection to the tower. If you're in Airplane Mode, all transmitting has been stopped thus preventing towers from locating the phone. That's the reason for Airplane Mode in the first place, so you're not transmitting anything on a plane.