I have just been down this route.
I had an old Belkin Tunecast II that I used with my Ipod Touch. When I got my 3GS, I thought I'd get an Iphone compatible one to compliment it and avoid the nag message telling me "this accessory is not compatible with the Iphone..blah blah..airplane mode...blah"
Anyway, with the old Tunecast, you just slotted the Ipod Touch in place and there were several interchangeable supporting cradles...easy.
The new Belkin is a pain and requires you not only to slot the Iphone into the cradle, but also insert a lead into the headset jack!! What a backwards step!
The Griffin was fine for a day..then stopped working! The Ipod was playing, but nothing was being transmitted to the stereo.
So, I've gone back to the old Tunecast! I've removed the cradle and my Iphone sits quite happily resting against the back of the unit. I get the message about a non-compatible accessory, but it transmits and charges the phone fine.
So until something better comes out..I'm sticking with "old faithful"