Bluetooth indicator doesn't respond on toggle

Just ran updates and rebooted. The behaviour of bluetooth is as expected.
After 'turn off' icon is dark, the entry 'turn on' is enabled and not greyed out, the entry 'turn off' is greyed out as expected.
The issue obviously wasn't due to package gir1.2-gnomebluetooth which remained the same version.
The only indicator which was upgraded was indicator-session. Attached recent upgrade history.
Mark the issue as fixed and reopen when it can be reproduced again.

Tested again just now after boot and login, bluetooth indicator greys out again wrong entries as described in topic. Reopened.

After recent updates and reboot menu entries work as expected. After cold boot they don't.

Add video to visualize the behaviour. Since it's german locale short translation:
Bluetooth: Ein = Bluetooth: On ## cold boot: greyed out when turned off = wrong
Bluetooth ausschalten = Turn Bluetooth off ## cold boot: enabled option even turned off already = wrong
Bluetooth: Aus = Bluetooth: Off ## reboot: greyed out when turned off already = correct
Bluetooth einschalten = Turn Bluetooth on ## reboot: enabled option after it's turned off = correct

After recent updates menu entries behave as expected after cold-boot and reboot.

After partitial upgrade of pending packages the behaviour reversed.
Now after reboot turning off bluetooth still displays 'turn off' as an option and 'turn on' is greyed out. The icon also remains after turn off.

Issue got worse, wrong menu options remain now after cold-boot and reboot.

After recent updates and reboot the behaviour is as expected again. Will report how it is after cold-boot later.

After cold-boot the behaviour is wrong as described in topic.

Oneiric up-to-date. Bluetooth indicator options are false as at the beginning of report, after reboot, cold-boot, logout-in.
When Bluetooth is turned off from indicator it can't be turned on again because 'on' is greyed out. User needs to open settings to turn it on again.

Does it work correctly from the gnome-control-center panel? The indicator works correctly there...

Sorry Sebastien, what is meant with gnome-control-center panel?
You mean via indicator-session, this opens settings as in the video or you mean in gnome-shell or gnome-classic?

It's all the same interface as in the video.
Bluetooth-applet preferences displays the same as when opening g-c-c via indicator-session -> system-settings -> Bluetooth.
And yes, as in the video, it can be disabled fine in applet and en-disabled via g-c-c, but when bluetooth is disabled either way the applet greys out 'on', hence it can't be enabled again from the applet only from g-c-c or preferences.

In addition, when it's turned off either way, via applet or g-c-c this doesn't survive a reboot. It has to be turned off every time after login, acknowlegded thanks to the fix of Bug 811249.
But why would it run a process which is expected to be disabled.

This where startup applications helped out where it was removed from, but allowed to disable it.
Acknowledged this could also be worked around by 'remember running apps' aka gnome-session-save which currently isn't implemented.
https://blueprints.launchpad.net/ubuntu/+spec/desktop-o-session-management

But what if one isn't a friend of saving a session, it then needs an upstart script in order to disable bluetooth?
At least turning it off-on via applet would only be one click away.

After recent alpha3 updates and reboot it works as expected again.
When it's turned off the option to turn it on is available, the option to turn it off is greyed out.
Will report back if it remains ok after cold-boot.

No luck again after reboot and cold-boot. Give up on the applet since the cause is unclear.

Indicator is still confused.
After latest updates of Precise the indicator allowed to turn on-off again. But again after a reboot the indicator indicates 'on' and can't be turned off, although preferences say it's turned off.
~$ dpkg -l *bluetooth* |grep ii
ii gir1.2-gnomebluetooth-1.0 3.2.1-1ubuntu4 Introspection data for GnomeBluetooth
ii gnome-bluetooth 3.2.1-1ubuntu4 GNOME Bluetooth tools
ii libbluetooth3 4.98-0ubuntu6 Library to use the BlueZ Linux Bluetooth stack
ii libgnome-bluetooth8 3.2.1-1ubuntu4 GNOME Bluetooth tools - support library
ii pulseaudio-module-bluetooth 1:1.1-0ubuntu4 Bluetooth module for PulseAudio sound server

Now after cold boot indicator is confused.
Indicator indicates 'on' and can't be turned off, although preferences say it's turned off.

After reboot it indicates correctly bluetooth is turned off and can be enabled, preferences are off.

This really never should have ever appeared to work properly, because gnome-bluetooth isn't (according to upstream) the right place to keep track of this, and bluez doesn't save killswitch state anywhere... Marking as duplicate to 923544.