My theory to explain this improvement after a network reset is the reconnection to the cell network prompts the phone to select 2G rather than 3G. IIRC the carrier wave of the 2G signal is a lower frequency, and therefore penetrates buildings (and other solid objects, like hands) far better than the higher frequency 3G carrier wave. And this would explain the improvement in connection strength and reduction in interference from people's hands. People are reporting different results because they will depend on the strength of the 2G signal where they are.
If this is true then it suggests that there are multiple issues at work here:
1. The external antenna is affected by contact with the human body (this not only sounds plausible, but likely to me). This issue is removed by fitting a case.
2. That covering the antenna with your hand, even when a case sits between the two, will cause a weak signal (spuriously reported as five bars) to apparently drop off dramatically.
3. That the phone is not prompt enough when choosing to drop the 3G network in favour of switching to 2G.
The first issue is not what I'd consider a fault, it's a poor design choice that anyone with a basic understanding should have considered (let alone a professional engineer).
The second issue isn't a fault either - it's physics and it affects any communication over RF waves.
The third issue is a fault, and something that is easily rectified. The phone needs to be less reluctant to keep trying to establish/maintain a 3G connection, particularly for voice calls. 3G voice calls offer little or no real benefit most of the time anyway and voice data is particularly unforgiving of lost packets, so a borderline 3G connection is going to make your call quality pretty poor. Data over a borderline 3G connection is less of an issue. Data sent over TCP/IP that never arrives can be resent. It will slow the connection down, but it will probably still be a lot faster than GPRS or EDGE.
I think that be tweaking the levels at which iPhone chooses to switch from one network to another will alleviate most if not all of these problems for the majority of users.