I love using bluetooth. It works so well, and it means I don't have to fart around to do anything. Simply jump in, turn the ignition on, press play.
The sound quality is great, and you can skip tracks using the stereo/wheel controls.
Only downside is that if you turn the ignition off and then back on (for example when starting the engine), the connection is dropped so you have to wait about 10 seconds for it to reconnect.
I have a Sony MEX BT3600U, which is in your budget, has Bluetooth handsfree + music, aux, and USB.