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The benefit of BT LE is that the pairing process is supposed to take at most 6ms. Thus the requirement for 4S or later iOS devices.

Pretty sweet. I wonder if this was supposed to be part of the new AppleTV reveal in Oct?

is supposed to take at most 6ms. Thus the requirement for 4S or later iOS devices.

I don't follow the causation between the first and second sentences. Are iPhone 4 not fast enough or do they lack the proper BlueTooth technology?

The latter. The iPhone 4S was the first model with BTLE hardware.