Yay, BMW Corporate wrote back with extremely helpful information:
"Thank you for contacting BMW of North America, LLC. I am sorry to hear of your disappointment with the iPod adapter. I would encourage you to stay in touch with your BMW center, and with us at
www.bmwusa.com, for the latest updates.
If you have any further questions, please respond to this e-mail or contact the Customer Relations Department at 1-800-831-1117, Monday through Friday from 9:00 A.M. to 9:00 P.M., Eastern Standard Time.
Sincerely,
Emily Lantz
National Customer Relations
Representative"