I think iPods are the way to go, they are overpriced, but have a load of features, heaps of accessories, and are very easy to use.
I put a $120 Sony headset in with front auxilory input and plug the iPod ( 80gb, currently 14,000 songs! ) to that, the only prob is having to turn the iPod off and on with the car, but that's hardly taxing as it's only one button ( not even a button really is it? ), at the moment I'm driving a mates Patrol with a Alpine iPod stereo built in, meaning it has the head unit and a cable into the glovebox with the head unit becoming the iPod controller, and find it a pain as it's no way near as intuitive to use as the iPod itself, although makes things much neater.
Headsets are cheap enough now as well..





				
				
				
					
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.  Mine hates fiddling about with stuff.




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