MerlinUK,
Rob here from the USA. Thanks for your post. Every device has a flaw, the severity of which is basically determined by the news media. Since the News likes to see large corporations or popular things fall, this will probably be coined "The worst hardware flaw in history". Just ignore the ignorant and Apple haters. They will always be there. I think in the end Apple will give everyone the "cover" to fix this problem and I'll explain why. But first I would like to put things in a little perspective.
Has anyone read much about the HTC EVO/Android phone that has maybe 8 hours of standby power? The thing won't stay charged through the night and if you use it, you recharge it. That would be a flaw also would it not? I have had many phones now and one of mine, the AT&T 8525, nearly caught me on fire twice (this was of course two different phone on two different occasions). The case got so hot in standby that it nearly burned my hands. That is a big flaw. One thing to keep in mind is that there is always a trade-off in design. In this case I think Apple took a risk on the signal strength to increase battery life: a gripe many including myself have had for a while. To get as much battery as possible they tried moving the antennas outside of the phone.
I am an electrical engineer and although I am not an antenna expert by any means I have had some training in it and I have also performed some tests. It is true that all phones' signals are affected by our hand, heads, automobiles, etc. They are at the mercy of their environment. However in this case when you cover the bottom left spacer of the phone you are in a way shorting out the antenna to the base of the phone. I did tests both with and without the "case" that Apple offers and found that the problem is greatly reduced or completely gone by using the case.
The reason for the success of using the case appears to be two-fold: One, your hand can't short across the black strip and two the cover holds your hand a few millimeters away from the antenna. So when I used the case my phone calls were quite acceptable, but without the case I had to be careful of the way I held the phone.
Take heart everyone who shelled out the cash. I was disappointed by this problem after I stood in line 6 hours to get my "reserved" phone, but I found a simple solution that allows me to use my phone the way I always have with very little grief. On the other side, this phone is incredible and I expect to get great service with this device.