Thanks! I used this recipe (although it needs to be update to be correct in 2014) to restore a completely broken Bluetooth system after upgrading my 15" Macbook Pro Retina to Yosemite. After the OS upgrade I could turn the BT radio on and off, but it would not connected to, discover, or pair with any Bluetooth devices. Following several other proposed solutions (Verify Disk, Repair Disk Permissions, Reset PRAM, Reset SMC, etc...) did nothing. Using Bluetooth Explorer (from Apple, not the App Store) finally did the trick.
Anyway, updated for 2014:
Bluetooth Explore is no longer bundled with XCode. It must be downloaded separately from https://developer.apple.com/downloads/index.action. You will need a (free) developer account to access the download.
Download the "Hardware IO Tools for XCode" DMG file and double-click to mount it. Then run Bluetooth Explorer right from within the mounted volume.
I checked off almost all the boxes in order to do a complete reset of the BT system. Pressed the "Go" button, then rebooted. Everything worked perfectly after the reboot.