"Why would your phone be inside wifi hardware?"
I'm not sure what you are asking. That sentence doesn't make any sense to me. I never said anything of the like.
To answer your other question, yes I have upgraded to 3.1.2 and it is still happening. Granted it is not nearly as severe as it was under 3.1. Another thing I've noticed is that notification badges are way slower disappearing now......like after I check my missed calls or email.
Just wondering if anybody else is having similar problems at this point.