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Apple knew their algorithim for the signal to bars ratio was wrong. It was a good idea at first to have the iPhone always having good strength even if it didn't. There is no standard set for the signal to bar algorithim.
In the beginning:
"Oh let's just make our algorithim show 5 bars if the strength is 30%.. Our iPhones will kill the competition with it's fake superior signal strength!"
Now the truth comes out and Apple is "Shocked" and "stunned" that their algorithim was set way off... Right.
Edit: sent from my iPhone 3g... With 5 bars... ;)
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