Having been caught lying about if for months. Apple have fixed the 'Signal Strength Bar Display' – BUT ONLY because the got caught out! Tossers!

Details of the 4.0.1 Software Update for iPhone

This update contains bug fixes and improvements, including the following:

– Improves the formula to determine how many bars of signal strength to display

 

Products compatible with this software update: iPhone 3G, iPhone 3GS & iPhone 4