Cup your hand around the bottom of the iPhone, so you can reflect the sound towards you instead of it traveling away.
You'll notice a substantial volume increase, at which point you can lower it a bit to reduce distortion.
I've got no complaints with the speaker. If you've ever heard the speaker on a PocketPC or other PDAs you'd know we're pretty limited in this department. The engineers had to use a speaker which is powerful yet doesn't draw a lot of current from the battery when in use.
Are you in delusional? You just said you place your hand around the speaker to reflect sound toward you and then you say you have no complaints..... I everything was fine with the speaker, you would not have to use your hand in that manner.....PWNED!