@ vnabhi
After reading some of the posts I am really confused all over again. Yes you are right the fm quality on the stock system is not at all that bad, and instead of doing some jugaad with the stock HU I see this as a harmless option to go for, both for me and for the car's HU. As and when the time permits I am going to the car accessory shop, for the shopkeeper has readily agreed to give me a demo before I go ahead with the purchase. Will keep you posted as to what happens.
For a fact till date I do not have an I-pod, but around two-three flash drives
, so instead of buying an I-pod and then this, only buying this is a cheaper option, IMO.