I just read that a judge rejected AT&T's request to pull Verizon's ads off the airwaves. The judge said the ads might be sneaky, but they're not misleading.
Even funnier to me, the judge offered this quote:
"Most people who are watching TV are semi-catatonic"
Personally, I like my iPhone, but I do have problems with internet access and dropped calls from time to time, so I think the ads against AT&T are pretty funny. The ads that I've seen do say "3G" coverage, which is accurate, but for people that don't know the difference between 3G and Edge, I can see where that can be misleading.
Just because AT&T doesn't have 3G coverage in a certain area doesn't mean they don't have coverage at all; it just means they don't have 3G coverage. Apple Insider does a nice job of showing AT&T's total coverage area in this article.
If AT&T really wants to set the record straight they should air their own ads showing their complete coverage areas, including 3G and Edge network coverage, but I have yet to see an ad like that.