Regarding FM transmitters for Ipods, Monster (the cable people) make a fantastic transmitter for the Ipod. I got one and have never had it fade out, and I've been using a station that in many areas around here gets a strong signal. The Monster just overrides it! I can't speak too much about fidelity, because I use it in the Miata with the top down so I cant hear too clearly anyway. Top up sounds fine to my ears, though.
Funny, I actually kinda wished I had an activated Iphone yesterday. See, I had to be at work at 2pm, and had been watching the French Grand Prix before I left. Naturally I got wrapped up in it and was dying to know who won. Having a phone that could tap right into the 'net (or one of those handheld things that does it) would've been great....I had to wait till I got home at ten to find out (and then nobody was telling!!!!).
Then it passed and I went back to not caring about not having a cell phone, Granny Smith logo'd or not.
-William