I hear yah.. just did a speedtest on my iMac, hardwired and got 41Mbps, then ran the test on my 4s and got 1Mbps.
Oh that sucks!
If it's that bad i would have gone to replace it, that is if it couldn't even hit anything above 10Mbit wirelessly if the connection is there! Are you using n-network? Or a/b/g?
My macbook which has n-capable wifi just like the iPhone maxes out at 60Mbit.. Though i'm not complaining at speed in the manner it's too slow to use, it's just that one usually wants max performance when there really are no other limits!
But damn, 1Mbps is bad. I feel your frustration!