I've been following this forum for over a month now and have posted feedback several times. All along, I was in the same camp with folks who thought this was a software issue. Now I'm not so sure.
Besides the audiogate issue, my phone has a beautiful screen and the battery drain has been relatively reasonable. I've always feared that exchanging for another phone may run the risk of getting a "more" faulty phone than the one I own.
I purchased my iPhone 4S in Singapore on a business trip last November and haven't returned to Singapore until last week. I hesitated, but finally decided to visit the SingTel store on Sunday to see about what my options were. The rep at the store told me that he's aware of the "audiogate" issue and that Apple is working on a resolution. He said that since it's a software problem, as a courtesy, they will allow one exchange (if he was so sure that it's a software issue, why offer the one exchange at all?). After that, I would have to wait for the software patch from Apple and they would not allow any more exchanges unless it's related to other issues. Again, I hesitated, but decided to take a leap of faith because non of my other friends who owns the 4S has the audiogate issue. SingTel took the replacement phone out of a black box, which I knew was not brand new. I asked the rep if the phone was new, he told me yes. I asked if I could have a brand new one out of a retail box, he refused. I wasn't in the mood to argue so I accepted the phone. When I got back to the hotel, I looked up the serial number online and the replacement phone came from the same factory as my original, but the manufacturing date was one week prior. This confirmed my suspicion that the phone was refurbished. I proceeded with the restore and it took me a good two hours to reconfigure the phone.
To my surprise, the audiogate issue has since gone away and the phone is working fine (fingers crossed). It's nice now that I don't have to toggle the speakerphone button everytime I call. The battery life also seems better than my original.
My opinion is that the reason Apple has not come out and confirmed whether this is a software or hardware issue is because they are searching for the lowest cost way to fix the problem. Obviously a software workaround on a defective hardware would be much more cost efficient than recalling all of the defective hardware. I am not a software developer, but I'm guessing it wouldn't be too difficult to write some type of code to automate the quick toggling of the speaker button function right before placing a call. This would solve issues for many. However, Apple would need to test this to ensure that it does not negatively impact the non hardware defective units. Again, it's my personal opinion only.
So I've had a change of heart and would recommend that if you have the opportunity to exchange for a replacement. Do it! We've all paid too much money to accept temporary workarounds or faulty units. I know this issue has impacted a good number of people, but know that there are many more out there with normal working phones.