My iPhone signal reads 3G while Settings says wifi is on?

My iPhone 4 automatically shut completely down to a black screen with an Apple about 3 hours ago.  It came back on and seemed to be operating fine, but the main signal icon (the cell strength bars ATT then 3G or the wifi strength icon) reads 3G while the Setttings page for wifi says it has joined our password-protected home wifi.  I tried some other local unlocked wifi networks and I could join and the wifi icon would replace the 3G on the front page of phone.  When I went back to our signal, it again went to 3G on the front page while signalling on the Settings page that it was logged into our wifi.
The wifi is fine as I'm using it with my MacBook Pro to access this site now.
I reset the phone, I rebooted it 3 times and disconnected the wifi cables and reconnected the network.  I also manually re-entered the passeord and it seemed to accept it.  Any ideas? 

I did the same. I have only Facebook, Twitter and Zite in my phone. It's worser than before I feel. Also I don't think the device works as designed. Wifi has better preference than 3G. My friends who uses 4S in Singapore (over wifi) easily getting 2 days of battery life. I charge this twice every day.
1 hour in the morning and 1 hour in the evening I use the device extensively over 3G (mostly read news) and almost all other time it's idles though it's connected to Wifi

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