Excellent. I'm having what sounds like the same (or very similar) issue with my aftermarket Kenwood KDC-MP745U stereo. iPhone 4S, iOS7.
What works:
- iPhone pairs with the stereo, phonebook downloads, stereo unit can display music info
- I can initiate/terminate phone calls from the stereo head unit, and I can answer
- Music/sounds/calls play through the stereo
- Controlling music via the iPhone (play/pause, next, back, etc)
The above items rule out a connectivity issue.
What doesn't:
Controlling music via the stereo unit (play/pause, next, back, etc) This used to work, however.
The stereo unit doesn't appear to have a BT firmware update available from the web site, and the only thing that changed in this situation is upgrading to iOS7. I will try the restore procedure tonight and hope that works as well as it did for you.
Cheers.