The "smartphone integration" adds the cradle - which takes up about half of your center console storage, be aware - a connection to the antenna, charging and media support.

However, you get a lot of that WITHOUT smartphone integration.

If you have the iPod "option" (I forget the code, sorry), you get a USB port and a minijack input. With the "Y" cable that comes with it, you can plug in an iPhone or iPod and play music all you like. With the October builds and later, it omits the need for an adaptor and you can use the "native" iPhone / iPod cable. It also adds some bluetooth and other options. However..

Apple can be - and IS, in practice - very restrictive with what they allow. Just because the device is perfectly capable of a given feature / option / technology does not mean that it will be allowed.

Since I don't have the "October" features, I am not certain - others here will correct me, but..

From what I understand, Apple does not allow SMS (text) message data over bluetooth, so that feature is useless (for now, anyway). They do finally allow music streaming over bluetooth (but watch your battery when you do that). I am not 100% sure this means your iPod library AND other audio, or ANY audio.

With the simple iPod option, you can charge it and play music.
With the smartphone integration, you can also use the antenna, if the phone supports it.

I got it because the cradle seems like it would be really much more convenient for me but I've been waiting on the adaptor for the cradle. In the meantime, my center console storage - what little there is to begin with - is a wreck and it annoys me.

Feature-wise, with an iPhone 4, it's not required to get what you want our of your phone and car audio. It works fine with just the cable. As to whether or not that's convenient is up to you.

You cannot use the USB port in the glovebox for music, as far as I know.. Even though there's even a little "pouch" at the bottom of the glovebox that looks like you would stick an iPod there and plug it into that USB port. But nooo...

I guess in Germany it's not done that way.. Hence the sort of saying..

"Does that look weird to you?"
"Normal weird or German weird?"

If I can figure out how well just the iPod adaptor for the cradle fits with a 4th Generation iPod Touch, I'll just get one of those and use the cradle for that and keep the iPod in the car so I don't keep forgetting my phone.

Bluetooth itself takes care of all my calling - and it works quite well, I should make a note on the older thread - I'm not allowed to use SMS in the car in this state anyway, and the music comes from the iPod. All set.