I thought the same thing...then figured out one was a mic and other was speaker. I really do wish Apple would increase the loudness though for both speaker and non. Mine has to be all the way up just to hear people at a reasonable level.
Yes, and I use my phone as an iPod now that my old 30GB iPod went to Hell. It technically still works but the audio doesn't come through. I have to press my thumn on the lower right side for it to work. One of the internal parts is lose, I just forget the name of it.
Besides, on my last phone the speaker had a decent volume when talking on the phone. I'm not the only one who has said the speaker isn't very loud.
And just FYI this is my 100 post mark, yay me! lol