The camry with the MP3 playback will allow you to burn a few hundred songs onto one cd. You would have to use windows media player or equivalent program to 'rip' your music cd's into mp3 format. Besides being time consuming, its quite and easy process. That would greatly consolidate your music collection.
In terms of a music player, i've been sucked into the ipods. I've had a flawless ipod mini and a new 8gb nano. If you're car has an aux IN port then you can use any audio player with a male to male audio cable to play music from your player to car.
There are FM wireless adapters too, but sometimes those don't work too well, especially if the radio antenna is in the REAR of the car. Sound quality is lacking too.
My car personally has an alpine head unit with the ipod direct attachment. I plug in my ipod on my glove compartment, and i control everything full speed from my alpine headunit. it also charges my ipod. There are other head units that do the same.
There are many options to choose from.
www.crutchfield.com maybe able to help you out. Or i'd visit an audio shop to see your options even if you decide to keep your stock headunits.