If that was what they call an update, I no longer want similar Apple updates!
Apple staff replies to my queries regarding the cause for my issue is that my device might originally had this H\W defect and the iOS upgrade might have included further tests which resulted in its detection and no longer enables the H\W to function!
Story starts, or as far as I understand (since although I believe it is attributed to the update, I can't claim I am pretty sure), shortly following my iOS 6 update:
1- iOS update installed smoothly and I have no problem for a week or so.
2- Using the Bluetooth in my car as usual, and between my calls, Bluetooth stopped functioning. Meaning that I completed a call with Bluetooth hands-free and my next call few minutes after that, the call was only through my device and I noticed it was disconnected from the car system.
3- Several trials to shutdown and start the device, hard restart the iPhone and restarting\resetting my car audio system, with no success.(Only the spinning Bluetooth wheel.)
4- My big shock was that the WiFi button was completely disabled.
5- So much frustrated now, I backup-ed the device, and restored, backup-ed up and wiped it completely off. I found no way to downgrade. No Hope, at all!
6- Headed to the apple store, heard the explanation above and had it exchanged for another refurbished device.
For your info: Out of warranty exchange price: [Price CHF 209]