a hardware problem covered up by a 'magical' software program byfooling fanboys by making less reception bars and making them look taller,giving the perceived better reception. Fanboys instantly drool and once again fall to steve jobs feet,Zombie nation title applys to these folks
I heard the firmware also fixes the death touch issue now the software boosts the external antenna when you hold it at the lower left side now only one bar drops if you are in a very poor network area but under norma condition there are no network bars drops and no call drops ha ! Take that you iphone haters i told you steve jobs is the master at this mobile industry competition i'm so happy
Lets face it Apple have screwed this up big time. they did well on the 3GS tbh but, all they had to do was put a better camera on it have a better processor and make the bluetooth compatible with all other bluetooth handsets.. then it'l be ace.
Remember, you're still holding it wrong, its not a design fault :P