Thanks for hanging in there with me D.I. After trying over two days, it is clear that Bluetooth alone is not going to allow sharing thru airdrop. A wireless internet connection is required. My devices state that clearly when trying and failing. That's fine when I am at home or traveling with my phone and MBP, but when I'm with others and want to share photos from phone/MBP we may not be on the same network or there may be none at all. That's why I was hoping to get bluetooth working. I have a Genius Bar appointment today and am reasonably sure they will confirm all this.
UPDATE: My research has found that both bluetooth and wifi need to be turned on. The bluetooth system identifies the devices and creates a local wifi connection between the devices that does not require a wifi internet connection or router. It only works with Apple products. It's like magic. It will work remotely where there is no real wifi internet connection. That sounds good.