Kenneth, I'm glad your issues were solved. I had tried restoring and setting up as a new phone weeks ago. It did not change the hiss. As one of our posters here said, (and I quote below) it seems to be an issue with the new phone.
"I'm sure Apple could do something in software to alleviate the hissing.
In my application for example, I can make the iPhone4 and the 3GS sound more similar if I reduce the playback volume by 30% in software for the iPhone 4 speaker only. At this point both phones have approximately the same volume when the hardware volume is at maximum. But mysteriously the echoing and hissing also go down dramatically too on the iPhone 4.
Apple may consider this new sound a "feature" and not a problem, because this method does seem to make smaller sounds more audible from other audio sources like games and music. Also this problem only affects playback of audio sources that originally contain noise, like video capturing and the voice memo application. In other words, the new way has good and bad points, but in my person opinion I like the 3GS sound slightly better. "
I agree, the 3GS's speaker sound is much better. I'm surprised we aren't seeing more reports of this except to guess that few people are testing the speaker in this way. But if anyone tries recording a voice memo and allowing some moments of silence, and then playing it back with earphones and with the speaker, the difference is remarkable. That is, if all the phones have this issue. Kenneth, are you not hearing a difference when you do this test now on the new phone?