You can get better sound quality out of the Ipod by swapping your head unit out for an aftermarket HU with a line-in. The Alpine in my old car has an external input that I used for both my Nomad and the SkyFi. That's exactly what I'm going to do with the new Accord. $200 will get you a suitable unit from Alpine, and other brands might be cheaper. (Or you can spend a little more and get something with more power and/or features.)
For the best end result, that's my recommendation.