Just an update - as expected, using a USB hub to split the ipod out signal didn't work. I figured as much since that's now how USB works. Plus, on the non BMW Assist cars, if you plug your ipod / iphone into the USB w/ the Apple cable, the car doesn't even recognize it.
So anyway, looks like no iDrive control if we're using the iStreamer. Considering the sound quality improvement, I think I can live with it for now.
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