Earlier today my colleague Alex Wolfe blogged that the number of complaints for the software updates on the iPhone were beginning to lighten. Now, however, it looks as though software update 1.1.1 is breaking the Bluetooth headset indicator on the iPhone for many users.

Here's a look at the Bluetooth indicator issue affecting many iPhone users:

As we continue to report on general troubleshooting issues (not unlock or hack-related) for iPhone firmware/software update 1.1.1, this release has broken the Bluetooth Headset indicator that appeared in firmware/software versions 1.0.2 and prior for some users.

Craig Crossman of the Computer America radio show initially identified this issue for iPhone Atlas, and Apple subsequently confirmed it.

While it looks like Apple is both aware of the problem and working on it, this issue highlights, once more, just how little Apple seemed to care about its customers with this firmware and software update.

By keeping the iPhone locked and pushing out software updates that render the device useless for thousands of customers, one has to wonder how Apple will continue to grow its user base in the wireless market. I am sure many people out there who had previously considered buying an iPhone have now decided against it, or they have decided to buy the iPod Touch instead.

What do you think? Have any of you encountered any issues with the Bluetooth headset indicator on your iPhone after the update with 1.1.1.? And does Apple owe its customers another apology for this latest iPhone fiasco?