As everyone knows, the iPhone 3G does not work very well as a phone. Not a big deal, unless you realize it is actually a phone ;-) On a phone, nobody wants their calls to be dropped. Is it so old century.
Everyone I talked to says the 3G reception is bad. Some friends are in the US and have no way to test the same SIM card on a different 3G phone. Some are in Italy and have been using 3G for a long time. I can confirm it just does not work well... It is not a network-only issue. There is something in the phone.
First, AT&T was under pressure (I even read the problem was visible only in major cities, just because it is where people are more spoiled ;-), then it was Apple. Apparently, the 3G chip does not work too well.
Some said a firmware update will fix all the issues. However, the 2.0.2 update that came out today does not seem to do it. I bet the solution is a combo of hardware, software and network. But hardware is a major part.
Unfortunately, that means changing the chip of every iPhone 3G and I do not think it is ever going to work for Apple. If you bought an iPhone 3G, you can hope for a slight improvement. Then hope something else breaks to return it and get a newer version that will work better. Too bad you bought the first version. Luckily for me, I have not :-)