I am having the same problem like what somewhat all of the 3400+ persons who's viewed this thread are having.
I've searched through the web just now about why is my 3Gs' WiFi signal's weak that brought me to this thread.
After reading all of the posts here, I realized that this might have something to do with the hardware, could be the antenna or anything that's for the WiFi of our iPhones.
I have come up to this thought as:
1.There was one who NEVER updated his phone's FW but encountered the same problem.
2.Problem was fixed after replacing the WiFi antenna.
3.The problem started after updating the FW and rolling it back to the previous version did not fix it.
4.There is one case that he updated two 3Gs' but only one unit experienced the problem.
Considering these cases, it is very possible that the hardware responsible for the WiFi signal gets damaged or busted after an update or after a long time of using it.
Not quite sure but could be that the FW update does not match the hardware that perfect why because of the software's(FW) demand of performace had pushed the not so compatible hardware through its limits then colapsed why it stopped working.
Same with using it for a long time or that it might have encoutered a bad bump on something or a bad drop on the ground that damaged the WiFi thing.
Or if not about the FW, could be that the hardware for the WiFi signal encountered a problem during the update could have encountered an error due to bad download after a silent interference during the FW download.
Bottom line is that if I am correct, this will never be fixed by another software or another FW update.
I am no expert. But I have been messing up with gadgets for a long time now since it is really my interest.
Again, this is just a possibility.