I can't say how the Premium Sound compares to the standard stereo, because I've not heard the standard one, but the Premium Sound is great, better than any sound system I've had before. I've not used an iPod in any of my cars before, but the sound was so good with Sirius I decided to try the iPod and so I bought a $6 cable on Amazon. Should have bought a better one, it seems.
BTW, already boxed up the cable and sent it back to Amazon, so I can't try your suggested test. When I put the iPod or iPhone on a real Apple cable (without AUX IN, of course), it just says "Not supported", but it does charge the iPod and iPhone.
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