If you're going to try to integrate a portable player into a car system, your best bet is an iPod. There just aren't any compelling conectivity solutions for any other portable players at this time. And likely not going to be.
Keep in mind that if you want to upgrade storage on a portable player, the lowest cost option is to simply replace the entire player with a new one. There will likely be larger capacity iPods later in the year. An empeg can go to 200GB today. And to 240GB in a month or two.
Another option is the Dension player which features a removable drive which doubles as a portable player (it doesn't have a display when portable).
Bruno