The dock appears to hold the iPhone at just about the right angle for the antenna to be polarized the same way the signal off the tower is. I tried the worst room in my house, which usually shows one to two bars of strength. With the iPhone in the dock (whether connected to a wire or computer or not), it went to five bars. Next I took the iPhone out of the dock and propped it up with a shampoo bottle at the same angle. Same result - five bars. Then I put the iPhone back in the dock, but laid it down in the same location. Two bars.
Then I put it back in the dock (five bars), but I touched the metal case with my fingers (two bars). So the hot setup is to use the dock and speakerphone (or buds) in marginal areas. A case helps with the attenuation problem, too, as does gripping the phone near the top while talking with it next to your ear.
[robg adds: I haven't tested this particular solution, but have noticed that the phone's orientation seems to make quite a difference, both with the AT&T network and with my home's wireless network.]
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