3G AND WiFi? Somehow I doubt you even own an iPhone...
WiFi has a completely separate antenna which is unaffected
It's possible the Wifi would go out and then the bars would drop, I suppose. Any signal issues I've seen have been non-wifi though.
The WiFi icon (which acts as a signal strength indicator for WiFi connections) unfortunately does hide the cellular data indicator, which shows whether you're connected to EDGE or 3G.