The media adaptor (if that's the version you have) is meant to allow more video integration (e.g. a video option on the iPhone menu) on 2012 model year cars (according to the BMW 2012 press release of earlier this year).
I presume that the Apple cable doesn't connect the shark-fin antenna either...
I must admit, I find the cradle quite handy as it frees up a little more room in the armrest (where I also have an iPod plugged in to the USB for more music and video capacity).
I haven't had any problems with the phone book or call lists.
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