basically.
when you tap this icon, it's basically a shortcut to the Connections --> Bluetooth module, so you still have to check it on or off. that and it resides in the system tast bar thing (where connection manager, screen rotation, etc, go).
of course, if you use the hardware key program, you don't have to do that. Personally, using AE Button Plus, I just double-tap my right softkey and that will toggle BT on or off and this icon will then reflect that status.
So this is good if you don't use Phonealarm, or you do but the skin your using doesn't have BT in it or, like me, you just like the extra visible confirmation of BT status.
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