I haven't got an iphone, but if I did I think I'd rely on bluetooth connection for the phone which is standard (in Aus at least) and use a mini USB eg Lexar Echo 16 or 32GB in the USB slot and leave it there permanently. Should act as a hardrive storage for music, accessable via the radiodisplay and steering wheel. It'd be unobtrusive, not obvious to thieves and your phone can just stay in your pocket or bag. I don't suppose you'd get the same visuals if you've got the BMW satnav, but the radio display should be the same as per ipod/iphone.
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