Does Bluetooth tethering not work, or am I doing it wrong?

I carry two Android devices: my Nexus S phone, and a Nexus 7 tablet (both running Android 4.1 "Jellybean"). The tablet has Wi-Fi, but no cellular radio; so in order to use the Internet with it when there's no Wi-Fi hotspot nearby, I have the phone set up for Wi-Fi tethering: it effectively becomes a Wi-Fi hotspot, and the tablet uses that for Internet access. This works perfectly.

However, I recently discovered what appears to be an alternate method of tethering: Bluetooth. Both devices have menu options that seem to allow it; here's screenshots of how I configured both devices:

^{Options on Phone and Tablet (click images for larger variants)}

I tested this by turning Wi-Fi off on both devices, then opening the browser on the tablet and refreshing the page that happened to be loaded. I saw a message that said

    Unable to connect to the Internet

I was, of course, hoping to see the page reload.

It's a shame that I cannot get this to work, because it promises one advantage over Wi-Fi tethering: easier security. I want to prevent other people from stealing my bandwidth; with Wi-Fi, this requires that I set up a WPA password, and then get that password onto the tablet somehow (which is quite tedious). But with Bluetooth, all that's required is that I "pair" the devices, which I've already done.

So I am wondering if I'm doing something wrong, or if this feature simply doesn't work.

Answer

Figured I'd check in again :) My phone and tablet are both running 4.2.2; bluetooth tethering has been working perfectly for months. There must have been a bug in 4.1 that got fixed in 4.2.