In my case (on lucid) dbus seems to be working just fine: the applet is able to 
switch bluetooth on/off and is correctly notified when switched via rfkill.
Still bluetooth is always on at startup regardless of the applet and 
InitiallyPowered/RememberPowered settings. Should this be filed as a separate 
bug? It might get bounced between upstreams the same way :(
BTW, where is Powered state supposed to be stored when RememberPowered = true? 
Looking for modified files with find / ~/ -newermt '2 min ago' gives me nothing 
but log files.

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Bluetooth's on/off status doesn't update from the SetProperty D-Bus method that 
bluetoothd sends
https://bugs.launchpad.net/bugs/446657
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