X5 iPhone APPS Integration.... or maybe not :(

[FunfDreisig]

Before you ask... Yes I know that the iPhone integration topic has been discussed many times before. And yes I've used the search function. But....

I think this thread may cover different ground - the integration of the X5 with iPhone apps. In particular apps, other than the iPod app, that emit SOUND.

[begin rant]
When we ordered our 35d in Aug 2009 we didn't have an iPod or iPhone. But we tried to get the option (the $400 USB/iPod) that would work best for us in case we got a iPhone later. Well that glorious day came earlier this week, when my wife managed to break her S-E flip phone. Today I took her X5 and her iPhone out for a drive to try out the X5<-> iPhone integration. Can you say 'Boy was I disappointed' boys and girls?

What worked --
1 - The iPhone worked great as a PHONE via Bluetooth But heck my antique S-E T616 works great as a Bluetooth phone too.
2 - The iPhone worked OK as an iPod when I plugged it into the Y adapter cable.
3 - Sorry there is no 3 in this list.

What didn't work --
1 - $400 dollars later I have a fancy iPhone loaded with cool apps and our X5 thinks it is just a Phone and an iPod - DUH. And the iPod functionality only works when the iPhone is attached to an extremely short Y cable that makes using any other of the iPhone apps nearly impossible while attached. Don't think SMS messaging, Suduko, etc. Think streaming radio, etc.
2 - I could not get ANY sound from any iPhone app. (except iPod) to pay through the "Premium Sound" system. Even apps that one could easily use without touching the iPhone while driving -- for example, streaming radio, turn by turn driving instructions from a navigation app, etc.
3 - There is a 3 in this list... That $400 USB/iPod option didn't even charge the iPhone. The iPhone let me know this with a snippy message 'Your very expensive BMW X5 was delivered with a crappy adapter cable that was not designed to work with an iPhone 3Gs. ' or words to that effect. Yes I know there is different BMW Y cable that probably will charge the iPhone but BMW chose not to include it*. At $400 they should have included every Y adapter cable that BMW makes with instructions as to which one works with which model iPod/iPhone, etc. After all, a BMW owner (and their family members) could have a whole range of different model iPods/iPhones today and more yet in the future.

AFAIK given the two cables we now have (the BMW Y adapter and the Apple USB -> iPhone cables), our choices are....
1 - Use the BMW Y adapter cable -- and allow our X5 to covert our smart iPhone into a dumb iPod and generic Bluetooth phone - DUH.

2 - Use the Apple USB -> iPhone cable -- and get to use all the iPhone features including all the apps (think passenger) BUT... the only X5 integration is a Bluetooth phone that can be charged via the USB port in the console - DUH. This can be done with a 12v outlet and a simple iPhone car cable -- IOW for maybe just a little less than $400.

OR

3 - Purchase an iPhone aux out cable to feed the iPhone audio to the X5 "Premium Sound" and use an Apple 12v chargeing cable. IOW we could convert our sleek, smart iPhone into a borg with multiple cables hanging out of it.
[end rant]

So my question/hope is that one of the fabulously well informed forum members can tell me a way to get better X5 <-> iPhone APP integration with a single cable that will both charge the iPhone and allow whatever is being output by the iPhone including APPS to be heard via the "Premium Sound" system.

Thanks in Advance - Funf Dreisig

* Our 35d with the $400 USB/iPod option, came with the Y adapter cable part# 61-12-0-440-796 that does NOT charge our iPhone. But bigX5er has posted that the Y cable part number 61-12-0-440-812 DOES charge an iPhone 3Gs