So I finally got to installing BT solution for streaming music from my phone. There are multiple BT adapters available, but RedTango tested and recommended this setup and I went with it:
Amazon.com: Miccus Mini-jack RX: Bluetooth Music Receiver pair it with Phones, Tablets, PCs and Apple Devices: MP3 Players & Accessories
Amazon.com: Griffin Powerjolt Dual Universal USB Micro Colors May Vary: MP3 Players & Accessories
Amazon.com: PAC SNI-1/3.5 3.5mm Ground Loop Isolator: Electronics
I was not sure if I need Ground Isolator, so I skipped it for now. Daytime music is crisp and crystal clear. It might change when headlights are on at night. I'll see.
Whole "installation" took about 30 seconds - you just plug the Miccus into the AUX in the glove box and power it from the 12v right there. I'll buy some velcro stickers and install it totally out of sight, deep and on the "ceiling" of the glove box, so only two wires coming out of AUX/12v remain visible.
$40 vs... whatever Blose option cost. Awesome!
Now I can install phone cradle and it'll be super clean with NO wires coming out of it (unless needs charging on long trips). I think I found the place and method to mount cradle. Now just need to do some prototyping and then CAD and order it.