I've had dropped calls and signal loss with my iphone4. Will I return it? No. The iPhone is the best smart phone for the price available from AT&T. And they're offering a free fix. I'm prone to dropped phones, so a case is important for a 600 dollar computer. A free case is even better.
When my contract ends, will I switch to verizon? Definitely. The droid x is a much better phone, and I can only imagine how amazing a phone they'll have when I switch. Plus the biggest shortcoming of AT&T is their network (how can my phone go from 5 bars to 1, when I didn't have 5 bars to begin with?) Why won't I switch now? I haven't looked at all of the terms to be released from a contract, but I doubt they would include my iphone4-less wife.
Do I like my phone (other than the dropped calls)? Just as much as any other phone I own. It's a phone, not some black and silver idol to bow before. This is the first apple product I've owned, so I'm not going to get whiny and hurt like those who are drunk from the Kool-aid! That droid/tin foil video is hilarious.