It doesn't obstruct the wi-fi signal, it's just more accurate. On 2.2.1, it was less responsive when you had a weaker signal, and with 3.x, it appeared to have slowed down more often, when really it was just being more responsive amd accurate.
Can you--or another smart person--please explain this to me? I have heard people in the apple support forum say the same thing, and I didn't understand it then, either. People are saying that they were able to easily maintain a wifi connection while using 2.2.1, but that they experience frequent wifi disconnections or inability to connect at all once they upgraded to 3.1. To me, it seems like it doesn't really matter whether 3.x is now more "responsive and accurate"--the bottom line is that if I am sitting in my living room and can't connect to my wifi anymore, this new accuracy and responsiveness has made things worse, not better. (Also, just FYI, I don't use a router--I just set up an ad hoc connection with my PC to download apps so I don't have to sync every time.) I know that the people who post in the apple support forums are people who are having problems, and that people who aren't having problems aren't posting about it. I just wish I had a clearer idea of how many 1st Gen Touch users are having wifi problems, and how many aren't! As I said, I'd like to upgrade to 3.0, but I am kind of worried about this issue.
Basically from what I've experienced/been told is that they have wifi signal more accurate meaning that the number of bars is going to be similar to your cell phone signal, the fewer the bars, the less strength you have, and the more likely you would be to drop the signal. I personally haven't had wifi problems, I've seen wifi range actually INCREASE for me (though the one wifi network might have projected a better signal, who knows!) and tells me how close or far away I am from the network.
I'm not completely sure, but I think it has something to do with the OS. From what I've heard, being more responsive and accurate, you'll get less bars more often and, as a result, the OS drops connections more often. I'm not 100% sure on this though.
Hi I have touch 1G, I upgraded to 3.0 as soon as it came out. The battery life was more than halved on 3.0, so I went back to 2.21 where battery life is now good again! I wont be upgrading anytime soon til they sort this out properly,
on my second gen touch i haven't see the wifi issue, and the battery life has gone down for me, only when i used say the landscape mode in safari which imo is the best part, i do find the shake to shuffle feature a little to sensitive, and the removed the feature that double tap home brings up the mini-music player or whatever