Thanks for the clear and concise answer

FWIW my salesman has an iPhone & iPod and really knows a lot about these options, since he recently bought a BMW for himself. He explained all the nuisances in great detail. I opted not to get the "smart phone integration" option because...
1 - It significantly restricts access in the console (passenger side).
2 - I rarely use my phone while driving.
3 - I can't imagine taking the time to plug in/out every time I got in/out of the X5 except when on long trips.
4 - I don't own an iPhone (yet).

Funf Dreisig