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You only get bluetooth streaming if you get the nav system. Didn't have it in my 128i and I couldn't stream. Have it in my 1M and I can stream.
Unless it that much of a pain to plug the phone in you're better off with the cable anyway. You will get better sound quality from the cable plus it charges it. You can buy extension cables for the Y cable on Amazon if the Y cable is too short for you. If you have nav though you can just use a regular iPod cable, be it the old 30 pin or the new Lightning cable.
As for the other things Andrey mentioned, I think the Harman/Kardon is definitely worth it. I'm not sure where he is getting that people aren't satisfied with it. All I've seen are positive things about it. It is leaps and bounds better than the base stereo in my 128i. And the factory alarm is worth it because most insurance companies will give you a discount is you have one.
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