Does the bluetooth needs to say on at all times for Lama to work?
It depends on how you set up the profile. Lama is a blank slate, so you tell it what to do.
For me, I have a single toggle on my home screen. I press it and it initiates Lama to activate Bluetooth and establish a connection to my car. If it gets a connection it opens the app Spotify and the music begins (among a few other things). If after 2min it isn't able to connect to the car's bluetooth, it turns bluetooth off and goes back to a previous state.
It's a program that's only limited by the user and his/her imagination. I have a toggle, but I have used it in the past as an automatic program, but again, it eats through battery because every X number of minutes it checks to see where it is, what it's connected to, and what it can connect to. So again, it's up to you and your imagination.
If you're looking for a quick install program that just works, Lama will not be for you. It takes manual set up, but it pays off in the end.