You're assumption is correct. That BT device is nothing more than a fancy FM transmitter. I don't know if BSW makes it yet, but they've always been the guys who produced aftermarket parts that integrate into the factory stereo to control iPod, iPhone, etc. Since this is coming from his BB, controlling it from the phone is his only option. I use my Treo to stream music by just plugging in a cord between the headphone jack of my phone and the aux input of my AVIC. It'd be cool to have my stereo control my phone, but I knpw that simply will never happen.

Interesting.

I'm old fashion. I use the Aux input and the iPhone still routes the calls through the car's bluetooth. The music comes back on when the call is done so I don't see the advantage.
Is this something a BB needs?

advantage is its wireless... thats it..... i'll usually have pandora playing off the phone in my headphones and when i get into the car it just switches over automatically... for short drives i don't even bother plugging it in the charge it... it just stays in my pocket.. for longer drives then yes i'll plug it in.

It is still useful for the price. I guess that if the built-in bluetooth module doesn't do AD2P than it won't do AVRCP. Then there's this article that says it's coming. Do ANY BMW models do AD2P with AVRCP yet? If BMW works with Apple Inc on technology, I can't see it coming soon because Apple has a lock on "seamless integration" which sells more iPhone/iTouchs and BMW cleans up selling a $2 cord for hundreds. AD2P with AVRCP would open that up to any modern phone that has these profiles like most Blackberries.

After some more searching, I find this link at the BMW main site that describes for a 3 series Coupe. It's a part of the ConnectedDrive framework that is just not available yet on an X5? I wonder when it will be. This is encouraging for anyone who does NOT use an iPhone.