Doesn't that new commercial with the orchestra that is touting the noise reduction tick you all off? Clearly the noise reduction is not working as advertised.
After seeing that commercial, I did learn where the iPhone 5 noise reduction (NR) microphone is located and did some simple tests. One would assume if the phone was face down on a table or in a pocket, that the noise reduction would be worse than if the NR microphone were near the noise source. So I ran some simple tests to see if this is the case.
The most common complaint I hear from people on the other side of my phone calls is the very loud typing sound from my PC keyboard. So I recorded a call with the phone face up on a table (NR mic down), phone face down (NR mic up), and with the NR mic immediately next to my PC keyboard.
The volume of the PC keyboard typing was very loud in all three case: no noticeable difference between the three.
To see if the issue is only related to headset, I did a test with speakerphone and handset. Speakerphone was about the same as headset. Handset however had noticeable quieter PC keyboard typing noises. While i was talking, the typing was almost unnoticeable. When i stopped talking, the typing was still loud enough to disturb the call, but not as loud as speakerphone and headset..
So I can only conclude that the NR only works in handset mode. And only when I am actively talking.