I agree. The weaknesses mentioned are not Bluetooth-specific. If you use the 16 octets for the PIN, there is nothing wrong with the security, and building a Diffie-Hellman exchange on the application level to obtain the PIN automatically should not pose a problem.
There are some security issues in the E0 algorithms, but the efecive key length is still around 73-84 bits which is more than enough (article here).
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There are some security issues in the E0 algorithms, but the efecive key length is still around 73-84 bits which is more than enough (article here).