well, i don't think people would be fond of the idea plugging an entire computer, however small it may be, into their glove compartment.
i think the idea behind iPod integration is that you listen to your iPod wherever, jogging, walking to work, riding the bus, and then you come to your car and are able to seamlessly continue listening to your music.
2011 E92 M3 - IB/Beige/Sycamore Wood/6MT/EDC/ZPP2/Nav/PDC/Heated Seats/iPod-USB/Enh. Audio
2008 E92 335i - Montego Blue/Black/Gray Poplar/6MT/ZPP/ZSP/Nav/PDC/Heated Seats/HDRadio/iPod-USB - Sold
2006 E90 330i - Mystic Blue/Black/Aluminum/6MT/ZPP/iDrive/PDC/Heated Seats/Sat. Prep - Sold
1994 E36 325i - Boston Green/Beige/Automatic/ZPP/Heated Seats/Premium Sound - Sold