I am having this issue as well. But here's a twist :
I encountered this issue (Bluetooth perpectually in seeking mode, wifi cannot be activated) after upgrading the Iphone 5 to IOS 7.0.3. (The update happened in Singapore).
Then, I flew to Hongkong for my holiday.
I was surprised to find that there were pockets of time when I could receive wifi (plus bluetooth was in non seeking mode - albeit in the settings app, things were moving slower than usual).
This happened in Airplane mode (I didn't want to incur any data roaming costs overseas, as an added measure; even though I had data roaming turned off as well).
In those pockets of times, everything worked perfectly well again.
Then, for some inexplicable reason, the phone lost its head again, and went into bluetooth searching-wifi unactivatable mode.
For what it's worth, perhaps this phenomenon I surfaced here, could help the Apple guys troubleshoot better.
PS : I am FULLY CONVINCED this phenomenon was caused by the IOS update, and that the software is the culprit.