With the new Proximity Beacons, the beacon does indeed turn off all of its packets, except for the Configuration/Connectivity packet. So if you flip the beacon to sleep, it should disappear from your own app if you use iBeacon/Eddystone, but it’ll still remain visible in the Estimote iOS & Android apps. This is intended behavior, although we certainly need to communicate it better (:
Long story short, flip to sleep works, no worries!