The technology being used to power my G1's "Search by Voice" feature is really surprisingly good. I would assume it's the same stuff. Maybe it was just the unusual names that threw it.
You mean everybody should have a name like "Bob", "Bill" ? :)
I have a feeling that the Search by Voice Feature on the iPhone works better than on the website but that might just be by accident
Perhaps audio quality makes a difference? On the G1/iPhone it can sample audio at whatever rate it needs, rather than just having to take what comes over the line.