The Alpine Control Interface for iPod is already here...$99 from Crutchfield. And to answer the other question, it does allow you to hide your iPod out of sight since all features are controlled from the Alpine Head Unit. If you're really slick you can rig it to keep the iPod somewhere you can still get to it if you want to (the top of the center console, perhaps? Can't fit much else in there).

See it here: Alpine KCA-420i iPod control interface at Crutchfield.com