Bluetooth 2.1 Specs released.
Key enhancements that are driving interest in Bluetooth Core Version 2.1 + EDR include:

Improved pairing
Before this version of the specification, there were many variations of the user experience when pairing Bluetooth devices. The experience depends on several factors, from the ease of finding menus on different devices to the use of security features. The improved pairing provides a consistent and intuitive pairing solution that includes finding devices, securing the link and authenticating the devices. The benefits of this secure, simple pairing include fewer steps for the user, improved security, and connection in a few seconds.

The new pairing process enables all consumers to quickly start using their Bluetooth devices together. For example, pairing a Bluetooth headset and mobile phone is as easy as turning on the headset, selecting “Add Headset” from the phone menu, and then watching the phone confirm it has found, connected with an encrypted link and paired the headset. For pairing scenarios that require user interaction, eavesdropper protection makes a simple six digit passkey stronger than a 16 digit alphanumeric character random PIN code. Improved pairing also offers “Man in the Middle” Protection that in reality eliminates the possibility for an undetected middle man intercepting information.

NFC technology may also be used in the new pairing system whereby a user would hold two devices together at a very short range to start the quick pairing process.

Enhanced Power Optimization
Bluetooth Version 2.1 + EDR offers further optimized power consumption through a feature called Sniff Subrating which increases current battery life by up to five times in many devices like mice, keyboards, watches, home sensor networks and medical devices. With further reduced power consumption, Bluetooth technology strengthens its position as the only viable wireless standard for connecting consumer devices that value low power consumption, low cost and ad hoc connectivity.