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Actually, it is. In either the 3G or the 3GS keynote, Steve said that the phone used some "intelligent engineering" (not exact quote) and used the chrome bezel and the ring around the headphone jack as part of the antenna system. Obviously, with the plastic back, it wasn't the whole antenna, but it was part of it.
 
Before I sold my 3G i had installed iOS 4.0 and had the same issues as you guys are having with the 3GS/4.

My Edge network would go from 5-2-0. 3G would drop as well.

I live in an area with cell towers everywhere, flat land, no hills. 3.1.3 always had full bars with 3G/E.
 
Before I sold my 3G i had installed iOS 4.0 and had the same issues as you guys are having with the 3GS/4.

My Edge network would go from 5-2-0. 3G would drop as well.

I live in an area with cell towers everywhere, flat land, no hills. 3.1.3 always had full bars with 3G/E.
Interesting. Makes me think it really could be a software issue then.
 
Just to add another little interesting bit to this...I was out today in the biggest city nearest me with 5 bars of 3G service. I decided to test out the issue there.

I gripped the left side as tightly as I could multiple times and could not get the bars to drop at all.

This is in direct contrast to the bars dropping when I'm at my house while gripping the left side.

Again, I have a 3GS running iOS 4. The more I hear about this, the more I'm convinced that it very well could be a software issue.
 
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