Hi Seth. I run tests as follows:

Test-1
-Removed blacklist acer-wmi
-Shut Down
-Cold Boot
-Result below - wireless disabled:

graham@LENOVO:~$ rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

Test-2
-Used hotkey to enable wireless
-Result below phy0: Hard blocked: yes - wirless disabled:

graham@LENOVO:~$ rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: yes

Test-3
rfkill unblock all

-Result below phy0: Hard blocked: no - wireless disabled:

graham@LENOVO:~$ rfkill unblock all
graham@LENOVO:~$ rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

-Overall Result remains in following state:
-acer-wireless: Wireless LAN - Soft blocked: yes
-Wireless still disabled

Test-4
Run following command:

graham@LENOVO:~$ sudo ifconfig wlan0 up

-Result:
-Wireless light now on but wireless connectivity actually not working

graham@LENOVO:~$ rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

-acer-wireless: Wireless LAN - Soft blocked: yes
-Wireless light now on but wireless connectivity still actually not working

Test-5
-Use hotkey to turn off wireless
-Result: unable to turn back on with hotkey
-Run command:

graham@LENOVO:~$ sudo ifconfig wlan0 up
SIOCSIFFLAGS: Operation not possible due to RF-kill

-Wireless still disabled
-Run command:

graham@LENOVO:~$ rfkill unblock all
graham@LENOVO:~$ sudo ifconfig wlan0 up

-Wireless light now on but wireless connectivity still actually not working

Test-6
-Confirm hotkey turns off wireless but need to run commands in sequence:

graham@LENOVO:~$ sudo ifconfig wlan0 up
SIOCSIFFLAGS: Operation not possible due to RF-kill
graham@LENOVO:~$ rfkill unblock all
graham@LENOVO:~$ sudo ifconfig wlan0 up

-Wireless light now on but wireless connectivity still actually not working

Test-7
-Reboot - wirless disabled
-Hotkey wont turn on wireless
-Run following command:

graham@LENOVO:~$ rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no   <<------

-Run commands:

graham@LENOVO:~$ sudo ifconfig wlan0 up
[sudo] password for graham: 
SIOCSIFFLAGS: Operation not possible due to RF-kill
graham@LENOVO:~$ rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: yes   <<-------
graham@LENOVO:~$ rfkill unblock all
graham@LENOVO:~$ sudo ifconfig wlan0 up

-Result - Wireless light now on but wireless connectivity still actually not working
-Run following command:

graham@LENOVO:~$ rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no    <<------

Test-8
-Run following command:

graham@LENOVO:~$ sudo insmod /lib/modules/$(uname -r)/kernel/drivers/platform/x86/acer-wmi.ko
insmod: error inserting '/lib/modules/2.6.38-12-generic/kernel/drivers/platform/x86/acer-wmi.ko': -1 File exists

-I expect because had had already re-booted and module was already inserted on boot up?
-Result - Wireless light still on but wireless connectivity still actually not working

Test-9
-Back to work-around - Put blacklist back on acer-wmi and delete /dev/rfkill
-Reult: /dev/rfkill re-created and wireless enabled and working again

Run command as follows:

graham@LENOVO:~$ rfkill list
0: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

-Hot key toggles Hard blocked and enables and disables wireless connectivity

graham@LENOVO:~$ rfkill list
0: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: yes
graham@LENOVO:~$ rfkill list
0: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

-Wireless connectivity working