iPod & iPhone
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This product provides the feature iPods and even the iPhone 3G are still missing - stereo audio streaming and control of your ipod via bluetooth. This is fantastically simple to setup and use. I was streaming music to my car stereo within a minute and I was quite happily skipping through tracks, pausing, etc without my hands leaving the steering wheel.
iPhone
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I have even been able to stream stereo audio from my iPhone, even though it doesn't say it is a compatible device. The only thing this product doesn't do on an iPhone is send the phone calls to the receiving device. To do this you also need to enable the on-board bluetooth on the iPhone and also pair that with the destination device... this may be an issue for you, it may not. I've yet to do a long journey with two bluetooth devices running so I can't comment if this drains the battery too quickly. If this is a problem then I can't see a quick way around this as the bluetooth transmitter plugs into the socket on the phone used for charging.
However until Apple upgrade the spec on the iPhone and iPod I have to say this is a fantastically simple and well built device that I will be using constantly.