Your watch is defective if Bluetooth goes in and out as you describe. Both Bluetooth and GPS are accurate and reliable on my stock 1/8/1900 with 20140120 firmware, given the firmware issues with some useful Bluetooth profiles being just broken or missing.
A firmware revision will not fix the problems you report on Bluetooth and GPS reliability, though if we ever get one it might fix Bluetooth problems leading to companion mode uselessness. You might have a defective antenna, MTK based devices are well known to have troubles sometimes due to defective or poorly connected antennas, particularly with GPS. Isn't the GPS and Bluetooth antenna the same part in the TrueSmart ?
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