Ok,
I turned Bluetooth off in the settings. It is clear that the Jailbreak turned it on, as I looked at non Jailbroken Ipads with 5.01, and the setting defaulted to off. There remains one unanswered question. According to the Apple Knowledgebase article, I was paired with a device, as the icon was Grey. The article states that if am not paired with a device, I should have no icon, even if bluetooth is on. Why the intermittent grey icon? To be clear, I never used bluetooth before and have no paired devices. Maybe the icon appearing when it should not is an IOS bug.