Okay, I did more testing with my ZAGG HD still on.
For me, the screen behaves properly during calls in daylight or in a well lit room. But in the dark or in low light conditions, the screen doesn't behave properly.
I tested this a few times in a well lit room and the screen was consistently working correctly.
And I tested this in my closet a few times and the screen was consistently NOT working correctly.
So it looks like the proximity sensor has issues handling low light conditions.
Wife/Girlfriend/Significant Other: Honey why are you in the closet making phone calls?