$131 is a good price, your probably not likely to do better unless you know someone that works at the dealership and gives you an employee discount. Doing the install yourself should also save a chunk of change.
It is a bit to spend on the audio (particularly if you have to buy the ipod), but like you said, fiddling with the mp3 player while driving probably isn't the best idea, and I didn't like mine sliding around all over the car. Much nicer to have it sitting in the glovebox charging.
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2007 'Cool' GXP
Personal Audio Link
Custom/Homemade A-Pillar Pod w/ Boost/Vac Gauge
Dejon IC Pipes & CAI
Wastegate Rod Mod
Solo Street Race
Debaged
ECU tune next