That alpine won't work for sure, but the Kenwood Excelon KDC-X995 for $320 also has that passanger ipod control option and has BT and HD radio built in plus the best in unit DSP available right now IMO (short of the Pioneer P99 which is $1200)
1. KDC-X995 = about $320
2. Parrott BT + Bit Ten D + Cammera Connection Kit + Cool Gear 12v USB Hub + Turtle beach usb to optical adapter = about $750 (best SQ option)
*I also sell a solution to get optical out with full charging on the Ipad if youre interested, I don't have it in my own car becasue it costs so much more and the Ipad lasts me 3 days using the method listed above, i think it trickle charges it just enough to make a difference