After reading that letter, it just got me plain curious (I don't own an iPhone but an N95 8GB) as to Apple's whole take on the situation.
To start with, gripping almost any mobile phone in certain ways will reduce its reception by 1 or more bars. This is true of iPhone 4, iPhone 3GS, as well as many Droid, Nokia and RIM phones.
I live in a very "fluctuating" area for signal. It can go from anywhere between full and very low signal generally hovering around 50%-75%. I did a quick Google to find the location of the antenna on my phone (the top area of the main bulk of the phone above the camera if interested). This is a place you don't tend to cover at all, or at most only partially even though I have big hands.
I cover the antenna with my hand and it totally destroys the signal. Goes totally away and then the phone must boost the power and claws back a single bar (on a Nokia).
So at least Apple's claim of this is obviously true.
The problem lies in Apple's dodging of the real issue. To show again the quote above:
To start with, gripping almost any mobile phone in certain ways will reduce its reception by 1 or more bars. This is true of iPhone 4, iPhone 3GS, as well as many Droid, Nokia and RIM phones.
In certain ways. So Apple were fully aware of this situation yet decided to put the antenna where the phone is held? Instead of a normal place like Nokia certainly have done on my phone. You know, in a place you are very unlikely to cover.
This only has one of two answers:
Apple are so inexplicably stupid they didn't know this until now. This is extremely unlikely.
They were fully aware that covering an antenna reduces the signal but decided to go with the "form over function" approach. Either because they really, really liked the design or because they thought (as they have stated!) that it wouldn't cause a massive drop in signal. This is probably what happened.
Great.