I agree with a lot of what you said, but uhm, dude, I own a Yaris ($14,400 with every feature available) and it came with an Aux port right by the e-brake. Plug a $5 (non-apple or Belkin) cable from the iPhone to the Aux port, hit Aux on the stock stereo and crank up because of the crappy noise insulation on the damn car, and listen.
I went high tech/high cost and bought the $29.99 cable at Radio shack that not only charges said iPhone but also allows me to plug in at the same time.
I can't wait to trade this car in, it was a mistake. Should have gotten the 4 door, but tried to save money, gas was $4.10 a gallon and it was supposed to get 36/38mpg, more like 29 city and 38 highway.