Arduino XbeeSerial write() read() not working with WT12 bluetooth xbee module

Hello,
I am trying to establish two-way serial communication between the bluetooth enabled arduino (with Xbee shield + WT12 bluetooth module) and an Android phonegap client. The arduino bluetooth mac address string is hardcoded into the javascript var so the arduino client connects successfully to the html client (attached js file). I am using the bluetooth serial plugin (GitHub - don/BluetoothSerial: Cordova (PhoneGap) Plugin for Serial Communication over Bluetooth) but the bluetoothserial.write and bluetoothserial.available read is not working because upon typing and sending input on the android mobile html client side, the arduino serial monitor does not read or send the incoming messages.
For my setup, I am using an Arduino R3 with an Xbee pro Shield v1.1 (http://arduino.cc/en/Main/ArduinoXbeeShield, I know its old, deprecated), and top of the xbee pro comm shield is the attached Bluegiga WT12 bluetooth module (http://www.cooking-hacks.com/documentation/tutorials/bluetooth-module-pro-for-arduino). I used phonegap to compile the web app client on android which is going to communicate with the arduino bluetooth interface. The arduino WT12 xbee bluetooth module is discovered and paired fine with the android client and the Arduino Bluetooth mac address is hardcoded into the javascript of the web app.

Ive checked explored and used the Phonegap don/Bluetooth Serial arduino examples at

/Chat
/Counter
/Led
/SimpleSerial

The Counter example works (1-way serial arduino write to javascript bluetooth subscribe listener).

(Optional: BT_Chat 1,2,3 attached are different tried arduino sketches. SoftwareSerial library is not needed, Serial.begin is sufficient)
The current arduino sketch is the following:

byte byteRead;
uint8_t state = 0;
uint8_t cont = 0;

void setup() {                
// Turn the Serial Protocol ON
  Serial.begin(9600);
}

void loop() {
   /*  check if data has been sent from the computer: */
  if (Serial.available()) {
    /* read the most recent byte */
    byteRead = Serial.read();
    /*ECHO the value that was read, back to the serial port. */
    Serial.write(byteRead);
  }
}

Is there a simple serial solution to sending and recieving strings between arduino and this phonegap web app client? Thanks

index.js (5.14 KB)

BTChat_2.ino (1.05 KB)

BTChat_3.ino (2.9 KB)

BTChat_1.ino (1.48 KB)