I'm sorry to revive this, but I was browsing around and with much respcect I wanted to correct something and share a bit from personal experience. Hopefully someone can benefit from my observations.
Brad, working the iPhone battery harder and more frequently does not degrade it's charge capacity any faster. In fact, it keeps it healthier. Sure, you might not get as much time between charges, but we're not talking about how much use you can get out of a single charge. We're talking about how much life you can get out of the rechargeable battery.
I once thought as you do, but I have since converted to a new form of iDevice battery-conservation. I used to try to use my batteries very sparingly, figuring that I would slow the battery's inevitable decline into shorter life. But my practical experience has proven otherwise. I have been using my 4S battery like there's no tomorrow and my 3rd Gen iPad battery severely less, sadly. The iPad is 16+ months old and has only 65 battery cycles, whereas the iPhone is only 10+ months old with 397 cycles! Granted, the iPad battery is much larger and typically gets more usage per single charge, but the principle still stands as the iPad battery cells are still seeing a relatively proportional difference in use than the iPhone battery cells, even if the device itself sees more use. After all, we're discussing battery cycles and not usage time. Make sense? So, are you ready for the numbers? Keeping in mind the age and number of cycles, the iPad has lost 6.4% of its original battery capacity. iPhone has only lost 3.3% (yes, I have special jailbreak software that allows me to monitor my cycles and amperage). That means that the iPhone battery has seen 6x more cycles than the iPad battery but only lost 1/2 of the capacity the iPad lost. I run my phone hard (obviously, with 400 cycles in less than one year); I don't baby the brightness, I play videos a lot, my phone gets hot in the sun, and I am totally lost without my google maps. I have reached Apple's "400" cycles and I didn't lose 20%. Wanna know why? Two main reasons: (1) Time. Part of what kills a battery is good ol time. My battery is still young in that respect. Look at my iPad numbers. It has FAR fewer cycles, but it's 6 months older. You see, Apple figured the average user would rack up 400 cycles in roughly two years, so that explains their quote. They weren't saying that your battery will always lose 20% after 400 cycles. Reason # (2) Exercise. Like a muscle in the human body, with routine exercise, it stays fit longer. Without regular use, like a muscle, it atrophies. The more you nurse your battery and try to prevent it from working hard, you are denying it the frequent exercise that those little cells crave. Once again, compare my iPhone battery to my iPad.
Lesson here: use your battery without discretion. After all, it is a mobile device. I used to constantly worry and whine about my battery life, but now I am free and I get out there and use it to the fullest. It was designed to be untethered. If my lifestyle demands heavy use, then doggonit I'm gonna buy me a battery case and get more out of it. In the end, it was always a consumable product, and I've learned to get the most out of it and enjoy it. Just my 2¢.
P.S. I'll update once I finay do reach 80% capacity and well find out just how far these things can go.