What we need is something that indicates network quality. This would be
a third indicator (or replacing the two previous ones). It would
indicate the level of service that one could expect while on a cellular
band.
Whoops, physics!The current signal indicator is based on the periodic heartbeat packets the phone broadcasts. This is the bare minimum for a cell phone to work at all: in order to route a call to a phone, the network has to know which cell it's in.
A "network quality" metric would require, say, a ping running to a host a couple hops away. This requires using the radio to actually transmit nontrivial amounts of data, and (depending on a whole lot of things, of course) more often than the heartbeat.
This would kill battery life. Absolutely murder it. You'd go from 200 hours of standby to 50. Maybe less.
Even worse if you wanted to get an idea of throughput. You'd have to transmit, say, a hundred megabytes of random data. Now we're down to 20 hours of "standby", and dramatically higher load on the backhaul. And, of course, li-on batteries die quicker the more heavily you use them, and the iPhone doesn't have a user-serviceable battery.