Here's what I personally think is the best setup.
iPod with SiK Ram Din cable. You can connect a charger for cheap but I haven't really needed one. Just get a stereo cable to extend it a bit and you're good. My black iPod and black cord match my interior very well. I make playlists and let it take care of the rest, and since my car's a stick, my right hand's always in that area in case I want to skip a track. Works well for me.
And yes, it does close right over the cables.