Most of the pundits think it's a hardware issue that may result in Apple's first major recall.
I wonder if Apple could keep costs down here by shipping those rubber bumper cases to everyone. Unless this is some bizarre feedback issue that can be fixed in software, I don't see how Apple could recall the iPhone 4 and truly fix this short of a major redesign. And I'd hate to see that happen, if for no other reason than it would seem such a waste...
Ars Technica usually know what they're talking about. I tend to trust them
As in
int fix_antenna_problem(int bars) { return bars < 5 ? bars + 1 : 5; }
? :)