Yes, I know the antenna is around the phone but the sensitive area is on the bottom, the same spot where the antenna of most phones are.
Thats simply a coincident. The bottom left portion of the iPhone is one of the places where Apple but a gap to separate the two antennas around the phone. If you but your hand on the bottom it connects the two and thus signal degradation occurs. If this was to reduce radiation to meet FCC specifications please explain why there is also a gap at the top on the phone near the headphone jack.
I think your missing my point. I am no saying that people's car are stalling, i am not saying that if a car was defective it would have the same issue as the iPhone (the gap and $29 case "solution"). What i am saying is that the iPhone 4 does have a reception issue and that is a fact, and that it's defect impedes the primary use of the device. My analogy to the car stalling is that it impedes the primary purpose of the car. No where did i say that there was an issue in the car caused by touching a gap or that the manufacturer said to put a case on it.Never said it was a software problem and pretty sure it's not. Your car analogy makes no sense since a lot of people are not experiencing the stalls. Also, if the car company says "if you don't touch the gap, there will be no stalls or you can put a $29 case over the gap if you insist on touching it", there wouldn't be a problem.
Apple is not the only iPhone 4 retailer. You have stated in your first post that some stores (not Apple) are charging restocking fees btw. Those other stores should not charge the customer for returning a product that doesnt work as intended/expected/ as advertised.Apple is offering a full refund.