Here is an update to my findings regarding BT and the power button.

I noticed in the registry: hklm\system\state\hardware is see 'Bluetooth with the value of 0 as well as Handsfree=0 and Cradled=0

When I check to enable Bluetooth this value changes to 1.
When I turn off the unit and turn it back on the value changes back to 0

I tried removing the Bluetooth dword to see what would happen and the dword entry was recreated after I hit the power button.

I then tried deleting the hardware key all together and the key was restored.

Is there a relation between a driver or the power button changing the 'hardware' key to default values of 0?

Is there a way to set the registry entry and prevent it from being changed?