Hmm... you guys bring up some interesting points.
CD based MP3 players: I think they have been out long enough where as people realize that CDR's scratch more easily and 700mb doesn't hold very much.. My thought is that the longer these players are out there, the more people will realize this. Hopefully all CD players will play mp3s in the future, but only as a side feature.
iPod: This is what got me thinking. Because the iPod is making such headway, technology like this is more mainstream. And anyone who has driven with one while trying to find a song can admit that it is not a solution for daily use (but perfect for a road trip where the passanger can play DJ).
Factory Radios: Wasn't the Mk3 a OEM type device? Maybe that's where the market is headed. But it does seem that while some companies are making it harder to put in aftermarket systems, some companies like Ford are getting away from "oval" shaped radios and the like...
I'm sure there would be some tweaks to the current design if the empeg were to be launched today such as USB2.0, but all in all, I think it's ready for the mainstream more now than ever. The feature set is deep, but to just play a song and find a playlist, no special reading is required. It's only complicated when you start looking for more.
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Brad B.