So, your iPad is on the Bluetooth setup screen where it sees a list of devices, and you see your iPhone in the list. While it's in that screen, your iPhone still cannot find it?
By the way, this is the Personal Hotspot functionality, it's just that it happens over Bluetooth instead of Wi-Fi. Personal Hotspot needs to be turned on for this to work. If it is not turned on, they won't show up to each other. (e.g. I don't have Personal Hotspot because I'm on an "unlimited" data plan, and my iPhone and iPad do not see each other in the Bluetooth devices list)
What happens if you go to the Bluetooth screen on your iPad and tap the name of your iPhone to attempt to connect?
What you are saying is not quite right. Here's what's listed on my IPAD Bluetooth setup screen:
Plantronics earpiece
Joe's iPad
Here's what is on my iPhone Bluetooth setup screen:
Plantronics earpiece
When I select Joe's iPhone from the iPad screen, it says "Connection unsuccessful. Make sure Joe's iPhone is turned on and in range."
What I am trying to do is get my iPhone to once again list my iPad on the iPhone Bluetooth setup screen.
By the way, my phone is on an unlimited data plan, too. Since I don't have Internet access at work, I got the Personal Hotspot on my phone so that I could use it to to connect my iPad to the Internet. Yesterday, I THOUGHT I had hotspot turned off, and connected my iPad to the Internet through the Bluetooth pairings.
Thanks for your help, too!