Has anyone actually read up on the way the integration is supposed to work? It's WAY less impressive than we're led to believe just through the words "seamless integration".
You must create five playlists specifically for the BMW controls, as there are buttons 1 through 6 on the BMW console. 1-5 will play the corresponding playlists, while 6 will play the entire library. The controls themselves are supposedly very simplistic and conventional. The iPod itself is docked into a receptacle located in the glove compartment.
And yes, the ad is real. It was seen in the July issue of Maximum PC. (ironic, no?)
From what I'm hearing so far, I much prefer the Alpine iPod solution, which has a console-mounted 7" LCD touchscreen controlling the iPod, with almost the same functionality as the iPod itself, along with the ability to create playlists.