Bluetooth in system settings shows bluetooth off, indicator says on

[Matyas Csányi]

Description: Ubuntu 12.04 LTS
Release: 12.04
All updates installed as of August 2nd. Laptop: Acer 3820TG. uname: 3.2.0-27-generic.

Bluetooth indicator shows bluetooth is on.
System settings -> Bluetooth shows bluetooth is disabled.

apt-cache policy gnome-bluetooth
gnome-bluetooth:
Installed: 3.2.2-0ubuntu5

I'm expecting to see consistent status being reported.

Screenshot attached.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: gnome-bluetooth 3.2.2-0ubuntu5
ProcVersionSignature: Ubuntu 3.2.0-27.43-generic 3.2.21
Uname: Linux 3.2.0-27-generic x86_64
NonfreeKernelModules: acpi_call
ApportVersion: 2.0.1-0ubuntu11
Architecture: amd64
Date: Thu Aug 2 21:12:46 2012
EcryptfsInUse: Yes
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Release amd64 (20120425)
ProcEnviron:
 LANGUAGE=en_GB:en
 PATH=(custom, no user)
 LANG=en_GB.UTF-8
 SHELL=/bin/bash
SourcePackage: gnome-bluetooth
UpgradeStatus: No upgrade log present (probably fresh install)

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.

[Steve White (stevan-white)]

1) I have never seeen this working, through several releases of Ubuntu.
    Other bugs (e.g. 407962) were posted years ago, and the bug was never fixed.)

2) The applet seems to make no distinction between bluetooth being turned off in software or in hardware.
    Use the utility
      rfkill
    to turn the radios on and off, and to see their hardware state.

3) It would be very good to have a clear graphical indication of whether the radio is turned off in hardware or software.
    I would propose to draw a line or cross over the bluetooth icon when the bluetooth radio is turned off,
    as well as providing a menu item saying so explicitly.

Thanks!