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So you're saying just connecting an iPhone 5 via a lightning connector to the in-car USB (?in the glovebox?) has given you the full range of connectivity / functions etc.? That would be GREAT news -- that's exactly what I'm looking for and it would enable me to skip the $3k tech package.
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Mine is an iPhone 4S, but otherwise that's exactly what I'm saying. I'll check it out with my wife's iPhone 5 when we get home later today, but I expect it will work the same. The USB port is in the centre console.
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In your understanding, is there *anything* we lose in terms of phone functionality / access to phone features by not having the Tech package?
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I don't believe so - but I should point out that for the Australian market, they don't offer packages as they do in North America. So what I've got is a 6MT 328i Sport Line with adaptive suspension, and no Tech Package-style options. It seems that with the MY14 update, my car has come with Professional Nav as standard - I don't know if that's the case for all markets, but I suspect it wouldn't affect phone functionality anyway. So the end result for me is that I have full connectivity (Bluetooth for calls, address book etc, and standard cable for audio) without paying a cent extra for options. Hopefully you'll find the same thing.
Edit - just checked iPhone 5 with lightning cable into USB. Worked perfectly.