Here's my iPhone setup. My car didn't come with the iPod controller, and since it doesn't work with Pandora and other music apps anyway, I rigged up this aux cable solution that allows:
a) easy access to the iPhone
b) better sound through the dock connector
c) no more armrest opening/closing every time I get in and out of the car
I don't leave the iPhone in the car, so I don't need the car to charge it.
I got a surface-mount headphone jack from Radio Shaq, and soldered it to one end of a regular right-angle aux cable, and mounted it inside the console "cup". I ran the cable through the console and into the aux port under the armrest. This allows the armrest to close all the way.
Then I made a line-out dock cable, which provides better sound than the headphone output. More info
here.
The iPhone friction-fits in the console cup, and stays put even during "spirited" driving, although sometimes the accelerometer detects the G-forces and rotates the screen.
The dock cable coils around to plug into the jack inside the cup, and after turning the aux-volume all the way down in the head unit, the sound is great!
