I've had my 3G iPhone for about a month now, and living in the SF Bay Area, I pretty much keep 3G access off and use the phone on the slower EDGE network.

I've read a lot about reception issues with the iPhone, but I think it's a bigger network issue with AT&T.

I have other friends in the area with other 3G phones on AT&T and they seem to not get much 3G reception either. In some places it's great, but others it's pretty bad.

AT&T needs to upgrade their networks to make signals stronger. When they say signal strength should be excellent, I have a feeling they mean it should be excellent if you're standing in a wide open field with no buildings, power lines, cars, etc. around you degrading the signal.