I had the Treo 700p  A while back.  The Bluetooth was slightly better,
though still a bit finicky at times.  In any case, I had no problem
using it most of the time, though I did occasionally get asked by people
I was talking with if it was raining out, or if I was making popcorn. :)

As is the case with many Palm OS devices, performance and reliability
from one specific handset to the next are going to be hit or miss.
Palm's manufacturing vendors have not had a good track record of
consistently making good quality products, so you'll find there are good
batches of phones, and bad batches.  If your phone's bluetooth is bad,
try getting it exchanged, and chances are the situation will improve.
Same goes with battery life, reception, frequently crashing/rebooting, etc.