Most people I know that just use the aux port for the iPhone/iPod do not like the looking down, not having everything it in front of you on the iDrive screen + like Naz said it is a safety issue at some point pretty much like texting and driving. I've been using the same iPod Nano since '06 in my cars (had a Dension iPod integration in my old '01 X5 and I use the same Nano in my new one with the iPod Adaptor). Even if Apple somehow changes (which at this point why would they) you could always buy a previous iPod for cheap and put your music on it.

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2008 X5 4.8
Jet Black/Black Nevada/Dark Burl Walnut
Adaptive Drive
Premium Pack
Tech Pack
Climate Pack
Sport Pack
20" Wheel Option
Premium Sound
Sirius Satellite
Rear DVD Entertainment
Multi-Contour Seats
Comfort Access
3rd Row Seat
Heated Front Seats
Running Boards
3M VentureShield Paint Protection Film