Besides a bizarre statement about how a software glitch led to artificially high number of bars being displayed on a phone’s screen, Apple’s kept tight-lipped about criticism that has come from the likes of Consumer Reports. This could go down in history as Apple’s major flub that gives its competitors, such as Android, a window to pull significantly ahead of the pack.

Given the late notice about the press conference, we decided to stay at home for this one. Live blogs from Engadget and Gdgt are doing a great job on keeping up with what’s going on right now. As some reports have suggested, Jobs is admitting the company knew that if you gripped it in a certain way the bars would go down a little. He’s saying that they aren’t perfect, but that no one else is either. He uses a BlackBerry and an HTC device to show how if you hold them in certain ways, the number of bars drop as well.

Apple is trying extremely hard to downplay the issue and is hoping it all blows over. Conceding some problems, they will give everyone a free case starting late next week. Jobs says it’s important to understand the scope of the issue—the data says the issue has been blown so far out of proportion, it’s incredible.”

During today’s event, Jobs tried really hard to level the playing field by not trying to give consumers a reason to choose another phone over the iPhone 4. Pointing to additional evidence, Jobs said that the iPhone 4’s return rate is 1.7 percent, much lower than the iPhone 3GS, which has a return rate of 6 percent. Of course, consumers get 30 days to return the phone, and so far the phone has only been on sale for three weeks. How many people will opt for the free case in week four or just decide to return the phone? Doesn’t matter Jobs says, if you are still not happy with the case, you can bring your undamaged phone in for a full refund.