That's a very useful post for me, as I was indeed confused.
I have an iPod, and the facility to play it though the car stereo was actually one of the things on my must-have list when I started looking at cars. I'm only marginally interested in the DAB option, really for future-proofing, as I don't think coverage is good around here at the moment. I'm reasonably happy with the FM reception available.
So if it's actually £165 to get DAB while retaining the iPod facility, thanks, I'll definitely pass.
Rolfe.