As I mentioned above, make sure you're not running things in the background that you're not aware of, turn off Bluetooth if you are not using it, and try just doing the surfing (no iTunes, and no Flash websites) from a FULLY charged state (hint: the moment the battery hits "100%" is not the same thing as fully-charged. Try an overnight charge.)
Report back and let us know how that went. If you got a lot closer to seven hours, then we have an answer. If you got closer to three hours, then I'd say yes, the battery is defective.