It starts working when I do:
[root@laptop ~]# ifconfig wlan0 down
[root@laptop ~]# rmmod iwl4965
[root@laptop ~]# modprobe iwl4965
[root@laptop ~]# ifconfig wlan0 up
If then I do
[root@laptop ~]# rfkill list
1: hp-wifi: Wireless LAN
Soft blocked: no
Hard blocked: no
2: hp-bluetooth: Bluetooth
Soft blocked: yes
Hard blocked: no
3: phy1: Wireless LAN
Soft blocked: no
Hard blocked: no
After system restart, it's back to non working state and that log file you mention is full with:
wlan0: Failed to initiate AP scan