'A co-worker actually attempted to convince me that there was no problem with reception and that it was a feature... WTF?'
I think he's correct on both counts. Firstly, the issue is not with the reception, but with the software believing that the reception is worse than it is.
Secondly, the fact that the antenna is actually part of the exterior of the phone (ie the band running around it), which causes this problem, IS arguably a feature. Not only is it unique, and excellent engineering (assuming they fix the issue mentioned above) - it also allows for a stronger signal in general, which boosts overall phone speed, clarity and call quality.
When compared to the iphone 3GS, in the same place, the Iphone 4 is significantly faster in terms of connectivity, as a result of the new antenna.