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That part is just a wired FM modulator. When installed correctly, when its switched on it will bypass the frequency used and feed the signal from the connected device directly into the radio via the antenna. The benefit of a Wired FM mod as opposed to the Wireless FM mod is that wireless has no defense against interfering signals and is typically not that strong of a signal output.
Benefits:
-that specific device uses a cable with either the ipod dock connector or 3.5mm headphone jack, (not both without additional parts or work)
-It can charge your ipod when using the ipod dock connector cable
-keep your factory HU
-good signal given from your device to your factory radio
Disadvantages:
-that specific device does NOT allow your factory HU to control your ipod
-you have to tune your radio to a specific station when in use
-if you don't turn it off it will interfere with your radio reception
-you keep your factory HU
Assuming you are not an audiophile, this is all you would need if you want to keep your factory equiptment. You may not even notice much of a difference in quality. If you are an audiophile, even in the slightest degree, then you probably wouldn't even consider keeping any of the stock equiptment, let alone need to consider this device.
Personally I think all stock audio equiptment is crap, but you would get more features/options/performance out of aftermarket equiptment than stock. But if you really want to keep the stock radio or don't have the cash to go aftermarket than something like that piece should be adequate.
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